One of the European Central Bank's senior regulators warned British financial authorities and institutions against a "race to the bottom" in how financial services are regulated and taxed after Brexit.

Sabine Lautenschläger, vice-chair of the ECB's supervisory board, cautioned that British banks would have to locate significant parts of their business in the eurozone to trade with the currency area. She also struck a note of caution on the possibility of the UK continuing to clear the majority