Speaking at the Future of the City dinner this week, Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), voiced his concerns on data laws following Brexit.
Bailey said there are a range of operational issues arising from Brexit which, if not tackled, will create financial stability risks and issues for both the UK and the European Union.
He said: “These issues have been discussed at length in recent months, and have been set out by the Financial Policy Committee. Just as they are symmetric in impact, so they are in the mutual interest of the UK and the EU to tackle.
“I think this point is increasingly understood on both sides. It is not a matter of scaremongering to get negotiating advantage.”
The FCA boss used the dinner to address specific concerns about Brexit – including data.
He said: “EU and UK firms hold and share a very large amount of data about each other’s citizens. It is thought that around three quarters of cross-border data flows involving the UK are with EU member states.
“The UK is a major exporter of digital data services such as data hosting and processing, and is the entry point to Europe for many global data-dependent businesses.
“If the UK was to leave the EU without mitigating actions on both sides, holding and sharing each other’s data may be in breach of national law.”