21:50 GMT +327 July 2017
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    Hard Brexit

    D-Day Arrives for UK Banks to Present Hard Brexit Plans to Bank of England

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    July 14 marks the day for financial service firms and banks to present their "hard" Brexit plans to the Bank of England.

    Prudential Regulation Authority (PRA), which was created as a part of the Bank of England by the Financial Services Act (2012) and is responsible for the regulation and supervision of around 1,500 banks, building societies, credit unions, insurers and major investment firms, wrote to companies requesting the information in April 2017.    

    ​Sam Woods, Deputy Governor and Chief Executive Officer of the Prudential Regulation Authority, said that he noted at the time the level of planning was "uneven across firms and plans may not be being sufficiently tested against the most adverse potential outcomes."

    Writing to relevant banks, insurers and investment firms, he requested written confirmation that bosses were considering contingency plans.

    He also wanted a summary of those plans, and an assurance that they will consider a "wide range of scenarios" from Brexit.

    "We would welcome full responses by Friday, 14 July 2017," Sam Wood said.

    ​Banks and companies have come forward and expressed concern at the risks associated with Brexit.

    Managing director for the consultancy firm Accenture, Peter Beardshaw, said that while banks are currently focused on the immediate, primary, impact of Brexit on their day-to-day operations, such as their physical locations, employee footprint and the need to restructure themselves as legal entities — it's important for them to take stock of the secondary ripple effect.

    "Banks will need to assess the impact on their customers and the challenges, but also opportunities, this might provide. This will include significant changes to market infrastructure, as well as new tariffs on businesses of all sizes," Mr. Beardshaw said.

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    finance, Brexit, Hard Brexit, UK economy, banks, Bank of England, Prudential Regulation Authority (PRA), Europe, Britain, United Kingdom
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