Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), said UK companies will start making firm Brexit contingency plans at the end of this year and into the beginning of 2018.
Speaking to a Treasury Select Committee, Mr Bailey said: “We tend to take the view that the end of this year, beginning of next year, is the point at which these things start happening.” He added that financial services need a firm commitment to a transition deal.
According to a report from the BBC, the Bank of England (BoE) believes 75,000 financial sector jobs could be lost when the UK leaves the European Union.
The BBC reports that the exact number will depend on the trading deal between the EU and UK, and in particular the position of financial services post-Brexit.
Banks and other major financial institutions have been asked to provide the BoE with contingency plans, should the two sides fail to reach a deal and the UK reverts to World Trade Organization (WTO) rules. Under WTO trading rules, UK financial services firms would lose EU passporting rights unless they have set up an EU-registered company.
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