The government has published a White Paper setting out its plans for leaving the European Union.
The paper lays out 12 ‘principles’ including ‘ensuring free trade with European markets’, ‘securing new trade agreements with other countries’, ‘taking control of our own laws’ and ‘strengthening the union’.
The government pledged to aim “for the freest possible trade in financial services between the UK and EU Member States”.
The paper added: “In highly integrated sectors such as financial services there will be a legitimate interest in mutual cooperation arrangements that recognise the interconnectedness of markets, as so clearly demonstrated by the financial crisis.
“Since that time, the EU has taken a number of steps to strengthen collective oversight of the sector.
“As the UK leaves the EU, we will seek to establish strong cooperative oversight arrangements with the EU and will continue to support and implement international standards to continue to safely serve the UK, European and global economy.”
In parliament Brexit secretary David Davis said the UK's "best days are still to come" outside the EU.
But Labour’s shadow Brexit secretary Sir Keir Starmer claimed the paper was published too late for "meaningful" scrutiny and said “nothing”.
Anthony Browne, chief executive of the BBA said: “All existing EU member states have a mutual interest in ensuring that there’s a smooth exit and securing post-Brexit arrangements that recognise the close ties between our financial systems.
“The government’s support for interim arrangements is essential to ensure there are no cliff-edge effects when the UK leaves the EU.
“We will continue to work with government and regulators to support their negotiation strategy to agree a new partnership with the EU.”
The paper noted that the government will "keep our positions closely held and will need at times to be careful about the commentary we make public”.
