Brexit has created significant challenges for policymakers in the European Union (EU), in particular in the financial sector, as the UK is now outside its regulatory framework. The EU-UK Trade and Cooperation Agreement includes a very thin financial sector chapter and constitutes a limited basis for regulatory cooperation. The panelists will discuss recent trends in financial sector regulation across the Channel, including divergence between the EU and the UK, and the threats posed by this divergence for financial stability and the risks of further fragmentation.