The City of London financial centre is at risk of losing its vital 'EU passport' after Britain voted to leave the EU, a European Central Bank boss has warned.
The 'passport' is relied upon by many London-based banks as it allows them to operate across the bloc without restrictions.
Speaking to France Inter radio, ECB Governing Council member Francois Villeroy de Galhau said if Britain chooses to leave the EU's single trade market then the City will not be able to keep that privilege.
"There is a precedent, it is the Norwegian model of European Economic Area, that would allow Britain to keep access to the single market but by committing to implement all EU rules," he added.
"It would be a bit paradoxical to leave the EU and apply all EU rules but that is one solution if Britain wants to keep access to the single market."
Brexit talks should be conducted as soon as possible to avoid uncertainties, he said.
George Osborne has said the UK economy is "prepared for the unexpected". So did he overstate his Brexit warnings?
Chancellor George Osborne will seek to reassure financial markets on Monday morning following Britain's decision to leave the EU.
Soros says that the European Union will struggle through the process of Brexit, with other countries wishing to follow suit.