The City has more serious things than Brexit to worry about

Brexit has been the centrepiece of the City’s agenda this week, with two planned Brexit Select Committee meetings alongside Michel Barnier’s visit to the UK.

Despite the fractures Brexit has caused within the government, there seems to be more coherent understanding in the Square Mile on the future shape of regulatory architecture.

Any future deal seems most likely to treat financial services based on existing equivalence rules for non-EU countries rather than a more ambitious deal.

But cyber risk is another systemic threat to financial stability identified by multiple regulators.

Mass data breaches and intentional manipulation of online platforms challenged the digital economy in 2017. In 2018, cyber security will become the undercurrent across technology, business and political concerns.

The financial industry is particularly vulnerable. Professional cyber criminals are after high-value targets such as banks, while state-sponsored activities are now adding to the growing array of cyber crimes. The banking system is ill-prepared to cope with these new threats and cyber crimes.

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