The implementation deal was agreed between the between Brexit secretary David Davis and EU negotiator Michel Barnier on 19 March.
In a unilateral action announced 10 days later, the FCA said EU firms and funds benefiting from a passport would not need to apply for authorisation for the implementation period ending in December 2020.
Speaking at The International Financial Services Forum, Bailey urged the European regulator to follow suit.
“While it is necessary to have unilateral actions in place for the UK, this is nonetheless a distinctly second best solution to the UK and EU authorities working together to deal with the risks,” Bailey said.
“Let’s get on with it please.”
Bailey warned Brexit risks were not limited to the UK.
“The cliff edge risks are symmetric in that they are present in both the UK and the EU,” he said.
Bailey supported a report issued from the European Parliament stating the EU’s equivalence regime does not suit either the EU or the UK and mutual recognition would be the better framework for a future relationship.
On the implementation of mutual recognition, Bailey said: “We can start by recognising that our regulatory frameworks are equivalent on day one of Brexit. This will be delivered, no doubt about that.
“Both the UK and the EU will retain autonomy in rule making, but we should put in place cooperation and coordination structures that work to keep them materially consistent.”
