Sam Woods, deputy governor for prudential regulation and CEO of the Prudential Regulation Authority (PRA) at the Bank of England, has warned the financial system faces a number of risks from a 'cliff-edge' Brexit.
According to the Financial Times, in a letter to the Treasury Select Committee, the deputy governor said a review of the worst-case scenario contingency plans by banks and insurance companies had highlighted fears of further added costs should firms lose their "passport" rights to the European Union. Furthermore, Woods said it was important to give UK and EU firms "more time" to make the changes needed. The PRA intends to look into these scenarios, which Woods said would provide a "material extra burden" and therefore put a strain on its ability to regulate the financial sector. ...
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