A suggestion that City firms could use a provision in European law to keep financial services jobs in the UK after Brexit has been branded "overly optimistic" and "shaky" by regulatory and policy specialists.

The idea was raised as HSBC chairman Douglas Flint, London Stock Exchange chief executive Xavier Rolet and Allianz Global Investors vice-chair Elizabeth Corley were questioned on Tuesday by the Treasury Select Committee about the impact on the finance sector of the UK’s exit from the European Union.