11.02.202012:25:00UTC+00BoE's Cunliffe: Cross Border Firms' Supervision Needs To Reciprocal

UK needs to work closely with the EU to have deep supervisory cooperation in all areas of cross border financial activity, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.

"Effective supervision of systemically important firms in business as usual cannot be achieved with multiple hands on the steering wheel," Cunliffe said at the German Economic Council Annual Finance Conference, Berlin.

Firms need clear and consistent messages, he added. Therefore, arrangements for shared supervision need to be worked out carefully and, crucially recognize the primacy of the lead supervisor.

Further, these arrangements need to be reciprocal and proportionate. This means the degree of assurance depends on the degree of risk, Cunliffe noted.

The UK left the European Union on January 31, ending 47 years of membership. Although UK is not a member of the EU, the Withdrawal Agreement provides for a transition period until December 31, 2020.

The Withdrawal Agreement provides for negotiations to begin on the EU-UK future relationship.