The institute made the observations as part of its submission to the Department for Exiting the European Union (DEXEU), in which ICAEW said it would like government to push for mutual recognition of regulators and regulatory coherence to protect and enhance market access.

ICAEW argued that achieving mutual recognition of regulatory frameworks in the financial and professional services sectors will be crucial to the UK’s ability to maintain access to EU markets. This new framework should focus on regulatory outcomes as opposed to processes and will allow the UK to continue to shape future regulatory developments.

The news comes as the UK’s ambassador to the EU, Sir Ivan Rogers, announced he would be stepping down ahead of Brexit negotiations, eight months before his job was due to end or be extended.

In an email to British colleagues, he urged staff to ‘challenge muddled thinking’ and ‘speak truth to power’.

Regarding immigration policy, ICAEW said the government must aim to establish a policy that allows the financial and professional services sectors to easily access and deploy talent in an efficient manner, regardless of residency or location of work.

ICAEW would also like to see the government push for UK professional qualifications to be recognised across the EU. Outside the single market, or in the absence of an agreement which replicates the existing recognition framework, the status of UK auditors and accountants would need to be renegotiated, potentially on a bilateral basis with each EU member state. The institute argues that securing a similar regime would protect the UK’s pre-eminent role in accounting and auditing in the EU market.

Michael Izza, ICAEW chief executive, said: ‘Our overarching message is that the UK government should push for a unique deal with the EU, rather than opt for a “cut and paste” model. It should play to the strengths of the UK economy and aim for a deal that would benefit UK business, while ensuring that we remain good neighbours and business partners.’