The “substantial amount” of planning for a no-deal Brexit has not offset the serious issues financial companies will face if the UK leaves the EU without an agreement in place, according to an industry lobby group.

The warning from the Association for Financial Markets in Europe comes despite the organisation’s chair, Michael Cole-Fontayn, recently telling a London conference that banks were prepared for a no-deal departure from the European Union. Earlier this month, Bank of England governor Mark Carney echoed his remarks, saying UK lenders could withstand the economic and financial shocks of a disorderly Brexit.