Financial institutions in the UK are placing too much faith in the UK government’s ability to secure a smooth transition into Brexit for the City, European policy specialists have warned.

City firms welcomed Prime Minister Theresa May’s assurances in a speech on January 17 that she would seek a transitional period as part of the UK’s exit from the European Union. The promise that the government would lobby for a "phased process for implementation” of any new regime for both the UK and member states was reiterated in the government’s Brexit white paper, published on February 2.