ECB and Bank of England to examine Brexit risks to financial services

In a statement, the Treasury said the group would focus on the "period around 30 March 2019" and that other authorities, alongside the The European Commission and HM Treasury, would attend the working group on an issue-specific basis.

Philip Hammond said the group will "provide further confidence to financial services firms as we exit the EU".

Chris Cummings, chief executive of the Investment Association, commented: “We strongly welcome today’s announcement from HM Treasury and the European Commission. It is important that working-level discussions on areas like regulatory cooperation agreements can get underway to provide firms with reassurance about their long-term ability to serve their customers, savers and investors throughout Europe beyond March 2019.

"This is a pragmatic step so that firms can plan for an orderly withdrawal of the UK from the EU. We remain confident of a pragmatic outcome that protects the interests of UK and EU savers.”