Proposals For Post-Brexit Financial Services
This report makes detailed proposals on the terms of a free trade agreement under which financial services suppliers in the EU and UK would have access to each others’ markets after Brexit. Its starting point is that it is in the mutual interest of the EU27, the UK, businesses and the financial services sector for the existing, heavily integrated, cross border flows in finance to continue in order to sustain jobs and growth across the whole of Europe. The proposals are intended to achieve a level of mutual access for EU and UK firms that is as close as possible to the current levels of access that exist for such firms within the EU framework. This is the IRSG’s third report setting our thinking on the basis of the future trading relationship between the UK and EU post-Brexit.
The report considers in particular:
- The key issue of the EU and UK having mutual access to each other’s markets after Brexit – and in particular the basis on which such access might be granted;
- How to manage changes in the law of one party that might mean that a party ceases to satisfy the relevant criteria for a certain type of access;
- How supervision of firms could operate in the context of a EU/UK agreement;
- How disputes could be resolved.
Source: International Regulatory Strategy Group
The total value of UK financial services exports remained stable in 2020.
Temporary equivalence was set to expire on June 30, 2022.
The Bank has new powers for reviewing CCPs following Brexit.
Restricting access to London CCPs would result in collateral damage for EU banks and end users.
The review is an opportunity to recalibrate MiFID II regulations post-Brexit.