Brexit

Brexit threatens UK and EU’s post-pandemic recovery, City lobby group warns

Regulatory fragmentation in the financial sector costs five to 10% of annual turnover globally

City of London Corporation's chair of the Policy and Resources Committee, Catherine McGuinness, said there was a need for 'cross-border regulatory collaboration in order to support a digital and sustainable economic recovery' in the months ahead
City of London Corporation's chair of the Policy and Resources Committee, Catherine McGuinness, said there was a need for 'cross-border regulatory collaboration in order to support a digital and sustainable economic recovery' in the months ahead Photo: Getty Images

The UK’s split from the European Union could jeopardise the two jurisdictions’ post-pandemic recovery efforts, an influential group of financial law specialists has warned.

Brexit has created “perhaps the biggest single act of fragmentation” of the financial rulebook in the region, at a time when international regulatory cooperation is “critical” for “global economic recovery efforts in the aftermath of the pandemic”, an 18 March report from the International Regulatory Strategy Group said.

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