Banking lobbies call on the British and EU to agree on cross border financial contracts

Two banking lobby groups called on the British government and the European Union to reach a deal so that cross-border financial contracts are not massively disrupted after Brexit.

UK Finance and the Association for Financial Markets in Europe said the legality of cross-border contracts inked by UK-based financial outfits after Britain leaves the EU club, in March 2019, was unclear.

"Faced with no clarity on the future relationship between the EU and the UK, market participants are having to take important decisions amid considerable uncertainty," the groups said in a joint paper.

Approximately €1.3trn of UK-based bank assets were linked to the cross-border provision of financial products and services, AFME chief Simon Lewis said.

"Alongside a transitional period, early action is required to provide the necessary clarity that these contracts will continue following the exit of the UK and the EU," Lewis added.