You have successfully emailed the post. Bank of England publishes checklist of key financial stability risks of a “no deal” Brexit. These include the “continuity of existed cross-england and brexit insurance and derivative contracts,” and “ensuring a UK legal and regulatory framework for financial services is in place.
BoE Governor Mark Carney laid out the plans at a press conference following the release of the bank’s twice yearly Financial Stability Report. LONDON — The Bank of England’s key Financial Policy Committee is creating a checklist of all the risks to UK financial stability should Britain fail to secure a Brexit deal. While the Bank of England is currently working on the assumption of what it calls a “smooth” Brexit — effectively where the UK leaves the EU with some form of deal, and most likely a transition arrangement — it has also taken steps to address what could happen in the event of a so-called “cliff edge” exit. Risks from a cliff edge are significant, with the financial services sector — and particularly the derivatives and insurance markets — likely to be among the worst impacted. That’s because these areas of finance rely on a series of fiendishly complicated cross-border rules and regulations which allow the free movement of capital around the continent.
If Britain drops out of the EU without a deal, many of those rules could cease to be in effect, causing chaos in the derivatives markets. As such, the FPC, which is tasked with ensuring the stability of the UK financial sector, is taking steps to mitigate such risks. Consistent with the bank’s statutory responsibilities, the FPC is publishing a checklist of the steps that would promote financial stability in the United Kingdom in the event of a no deal outcome,” Bank of England Governor Mark Carney said at a press conference following the publication of the Financial Stability Report on Tuesday. This checklist has four important elements,” he said.
Ensuring that a UK legal and regulatory framework for financial services is in place at the point of leaving the EU. The government plans to achieve this through the EU withdrawal bill and related secondary legislation. Recognising that it will be difficult ahead of March 2019 for all financial institutions to have completed all the necessary steps to avoid disruption in some financial services. Timely agreement on implementation is necessary to reduce such risks, which could materially disrupt the provision of financial services in Europe and the UK. Preserving the continuity of existing cross-border insurance and derivative contracts is necessary. Domestic legislation will be required to achieve this in both cases, and for derivatives, corresponding EU legislation will also be necessary. 40 billion of insurance coverage, could be left without effective cover.
He resigned as leader of the UK Independence Party on July 4, shortly after the referendum. Back in the old neighborhood in North West London after a long absence, I went past the local primary school and noticed a change. Many of my oldest friends were once students here, and recently—when a family illness returned us to England for a year—I enrolled my daughter. In my case I had the advantage of local history: for years my brother taught here, in an after-school club for migrant children, and I knew perfectly well how good the school is, has always been, and how welcoming to its diverse population, many of whom are recently arrived in the country.
At the time my particular brand of liberal paranoia was focused elsewhere: I noticed the fence. For this Victorian school, which, for a hundred years, has found cast-iron railings sufficient to mark its periphery, had now added what looked like tall bamboo slats between the bars, as well as six feet of plant life climbing these slats, blocking the view of the playground from the street and therefore of the children as they played. I’ve lived in this area 40 years. I saw a wall go up outside the Jewish school ten years ago and then a few years ago at the Muslim school. But I never thought I’d see one up outside __________. An intemperate e-mail, filled with liberal paranoia. By contrast the reply I received was sane and polite.
I’m used to change: around here change is the rule. Waves of immigration and gentrification pass through these streets like buses. But I suppose this local school, in my mind, was a kind of symbol. Two days later the British voted for Brexit. I was in Northern Ireland, staying with my in-laws, two kindly, moderately conservative Northern Irish Protestants with whom I found myself, for the first time in our history, on the same side of a political issue. Much has been written since about the shockingly irresponsible behavior of both David Cameron and Boris Johnson, but I don’t think I would have been so entirely focused upon Boris and Dave if I had woken up in my own bed, in London. No, then my first thoughts would have been essentially hermeneutic.
But in Northern Ireland it was clear that one thing it certainly wasn’t about, not even slightly, was Northern Ireland, and this focused the mind on what an extraordinary act of solipsism has allowed this long-brutalized little country to become the collateral damage of an internal rift within the Conservative Party. Michael Gove and Nigel Farage meanwhile are the true right-wing ideologues, with clear agendas toward which they have been working for many years. A referendum magnifies the worst aspects of an already imperfect system—democracy—channeling a dazzlingly wide variety of issues through a very narrow gate. It has the appearance of intensification—Ultimate democracy! Even many who voted Leave ended up feeling that their vote did not accurately express their feelings.