French regulator in advanced talks to lure UK banks

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Major banks are in advanced stages of planning move some of their operations from London to Paris, according to France’s financial regulator.

Benoit de Juvigny told the BBC’s Newsnight programme that “large international banks” have carried out due diligence on setting up subsidiaries in Paris, with with many other companies holding informal talks

Eight global financial centres are said to by vying for business from UK-based financial services firms owing to uncertainty about whether passporting rights can be maintained post-Brexit.

De Juvigny said the French regulator would likely expand to cope with a potential influx of companies.

But he warned about regulators competing to attract banks. He said: “The danger is the race that we could have for a more lenient regulation with a more lenient regulator.”