The Bank of England's Financial Policy Committee called on European Union authorities to take timely action to protect cross-border financial services from the risk of a so-called hard Brexit.

The committee, which disclosed its Oct. 3 policy meeting, said the bloc had only made limited progress, compared to the considerable efforts in the U.K., to address risks, especially those associated with insurance, derivative contracts and the transfer of personal data.

With less than six months remaining before Britain is due to leave the EU, the Financial Policy Committee said it was not possible for companies to mitigate fully the risks of disruption to cross-border financial services on their own.

EU clearing members' contracts with U.K. central counterparty clearing will need to be closed out or transferred before March 2019 to avoid financial stability issues and ensure their safe operation, the committee added.

Additionally, the FPC said it is maintaining its U.K. countercyclical capital buffer rate at 1% and will review the rate at the committee's Nov. 28 meeting.