State Street Global Advisors, the world's third largest asset manager overseeing more than $3tn, has warned it will take “years” for any benefits to be felt from the UK's recent divorce from the European Union, pointing to financial services as one of the main sticking points that still needs to be addressed.

Talks began this week between the UK Treasury and European Commission to formulate a regulatory framework for financial services, after the Brexit deal agreed between the two sides on 24 December did not include any provisions for some of the City's largest financial institutions to access the bloc. The UK and EU outlined in the December agreement that they would draft a memorandum of understanding on financial services by March.