The association that represents German asset managers has called for “unhindered access” to investment services provided by the City after the UK leaves the EU.

In a policy paper the German Investment Funds Association (BVI), which represents the German asset management sector, said “proper and unobstructed” access to London investment services was crucial to the industry.

Read more: Philip Hammond uses Mansion House speech to accuse EU of land grab of City

“The importance of such access will significantly increase in the event of Brexit”, the paper said,

The BVI, as reported by the Financial Times, also called for European fund managers to retain access to clearing and trading facilities in London post-Brexit because of gaps in the EU’s infrastructure.

This comes after chancellor Philip Hammond accused the EU of attempting a land-grab of the Square Mile in his Mansion House address last week.

Hammond used his speech to rubbish the so-called enhanced equivalence regime proposed by Brussels.

“These proposals have nothing to do with equivalence and everything to do with an ambition to force the location of business into the EU,” Hammond said.

Read more: Brexit mutual recognition is "eminently achievable" says FCA boss Bailey

“So although I have heard talk of ‘enhanced equivalence’, I have not yet seen a credible proposal for what it might mean or a clear articulation of how it might work,” he said.

Andrew Bailey, the head of City watchdog the Financial Conduct Authority (FCA), has also called for a mutual recognition regime for financial regulation after Brexit.

Bailey said that such as regime was “eminently achievable” and rejected calls for a less integrated relationship based on equivalence.

Bailey said: “The current EU equivalence regime, well intended though it is, doesn't best suit any of the parties going forwards. Mutual recognition would be a better way to establish the steady state between the UK and the EU in the future.”