The Bank of England has asked financial firms to disclose their Brexit contingency plans, with a warning that a 'hard Brexit' would cause major economic harm.
The requirement to submit a contingency plan comes from the Bank's Prudential Regulation Authority, and applies to those financial firms with cross-border activities between the UK and EU, as well as subsidiaries of UK investment banks operating in London.
Bank of England governor Mark Carney is warning that the global financial system is at a 'fork in the road', talking more about the need for responsible financial globalisation than the threat from Brexit.
But he threw some Brexit warnings into the mix too, despite his lack of credibility when it comes to issuing dire predictions over the fate of the British economy.
"The main purpose of this letter is to ensure that all firms are making, and stand ready to execute in good time should the need arise, contingency plans for the full range of possible scenarios,"