LONDON (AP) — The Bank of England is advising European financial firms operating in the U.K. to plan to operate as they do now for a period after Brexit in a little more than a year's time.

The bank welcomed last week's agreement between the British government and the remaining 27 members of the European Union for a transition period after Brexit until the end of 2020. It said Wednesday it has made clear to "relevant firms that they may plan on the assumption that U.K. authorization or recognition will only be needed by the end of the implementation period."

Many firms operate in the U.K. through so-called "passporting" rights or other EU frameworks. A number of them had warned they could leave the U.K. if no transition period was agreed on soon.