LONDON, Feb 11 (Reuters) - Cross border supervision of major
financial firms need to be worked out carefully to avoid ending
up with "multiple pairs of hands on the steering wheel", Bank of
England Deputy Governor Jon Cunliffe said on Tuesday.
Britain left the EU last month and is seeking access to the
bloc's financial market once a "business-as-usual" transition
period ends in December.
The London Stock Exchange's LCH unit clears the bulk of euro
denominated swaps, but access to clients in the EU after
December has yet to be worked out.
The EU has said any access would be contingent on EU
regulators being able to supervise cross-border firms like LCH
very closely, but Cunliffe cautioned about being too intrusive.
"Effective supervision of systemically important firms in
business as usual cannot be achieved with multiple hands on the
steering wheel," Cunliffe said in a speech in Berlin.
"Firms need clear and consistent messages. This is true, a
fortiori, at times of stress."
Arrangements for shared supervision need to be worked out
carefully, subject to agreed procedures and recognise the
primacy of a financial firm's home supervisor, Cunliffe said.
(Reporting by Andy Bruce and Huw Jones)