BaFin , Germany 's financial watchdog , has said it will work with the UK 's Financial Conduct Authority to reach agreements bilaterally ahead of Brexit if the UK is unable to conclude a deal with the EU . Banks have said that Brussels is dragging its feet on agreeing regulatory cooperation agreements in order to pile pressure on lenders to staff new hubs in the EU before March and shift the contracts to them. The move is a contingency plan to avoid market failure in the event of a no - deal Brexit . Representatives from the EU would like to agree to multilateral points of understanding but stalling talks over the withdrawal agreement have impeded progress . BaFin is the first national regulator to indicate its willingness to negotiate with the UK on its own .
BaFin , Germany 's financial watchdog , has said it will work with the UK 's Financial Conduct Authority to reach agreements bilaterally ahead of Brexit if the UK is unable to conclude a deal with the EU . The move is a contingency plan to avoid market failure in the event of a no - deal Brexit . Representatives from the EU would like to agree to multilateral points of understanding but stalling talks over the withdrawal agreement have impeded progress . BaFin is the first national regulator to indicate its willingness to negotiate with the UK on its own .