Brexit And Cyber Attacks Threaten EU Financial System, Say Regulators

Brexit and cyber attacks are two of the "key risks to the EU financial system", the joint committee of the EU supervisory authorities (ESAs) has said.

The potential for "sudden risk premia reversals", and risks around the "sustainability of investments" stemming from "climate change and the transition to a lower-carbon economy" were also identified in the committee's new spring 2018 risk report (15-page / 1.03MB PDF).

The committee provides for cooperation between the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA).

According to the risk report, financial services firms should look at how to provide for "contract continuity", as well as whether they need to relocate some of their operations, with Brexit coming.