The minister said he "fully expects" the UK and EU to strike a deal to introduce a transition period, but said a 'no deal' outcome may not be as hostile and chaotic as some anticipated. He also warned that City firms' annual tax contributions to the Treasury were at stake. "That figure of £72.1bn is necessary as we increase investment in public services and we need that money," he warned. The FCA consultation covered a range of amendments to rules governing banks, investment firms and other financial services companies. The watchdog insisted no big policy changes would be needed, with most areas covered by a temporary authorisation offered to EU-based companies operating in the UK for up to three years. Nausicaa Delfas, executive director of international at the FCA, said: “The FCA is planning to be ready for a range of scenarios. "Today we are publishing two consultation papers to ensure that in the event the UK leaves the EU in March 2019 without an implementation period, we have a robust regulatory regime from day one, and to ensure a smooth transition for EEA firms and funds currently passporting into the UK."
The City is expected to lose up to 5,000 financial services jobs before the UK leaves the EU in March 2019 , according to the City minister , John Glen . Addressing a House of Commons committee , Glen told MPs that while he was doing everything possible to prevent the exodus , he disagreed with a Bank of England projection that 5,000 jobs were likely to move to the continent by Brexit day .