The U.K. Financial Conduct Authority is keeping an eye on the continuity of contracts amid Brexit negotiations to ensure consumer protection, the Financial Times reported, citing Christopher Woolard, the regulator's head of strategy and competition.
There are concerns that British consumers will still have access to European financial compensation schemes after the U.K. leaves the EU.
"The issue of consumer contracts still having a mechanism to work cross-border is going to be critical," Woolard said in oral evidence to the House of Lords' EU justice sub-committee. "We need to make sure these contracts are effective and work outside beyond the exit date."
The U.K. and EU need to agree to "heads of terms" for a transition deal, which will enable businesses to plan in advance, Woolard said.
Easing regulation to attract business "benefits no one," he said, while reiterating U.K. FCA chief Andrew Bailey's stance that a "cliff-edge" Brexit without a transition deal could be "messy" for the financial sector, the FT reported.