The EU Financial Affairs Sub-Committee has published its report on Brexit and financial services. The report says it is critical to agree a transitional period for financial services to avoid a “cliff edge” which could cause UK firms to restructure or relocate working on a “worst case” scenario. It notes that the equivalence provisions in various pieces of EU legislation are patchy, unreliable and vulnerable to political influence. It says the Government must seek to bolster these provisions if passporting is no longer to be possible and notes it is critical to assess the extent to which firms currently rely on passporting. Baroness Falkner commented also that it will be New York, not the EU, which would be the likely beneficiary of the pain to the UK financial sector.