Brexit and a new model for enhanced equivalence

Author: | Published: 24 Aug 2017

Any post-Brexit arrangement between the UK and the EU would need to be grounded in mutual recognition of each other’s financial services rules and standards. But more work is needed to firm this solution up

It is generally accepted that the UK cannot have a post-Brexit relationship with the EU that involves the passport, the arrangement by which a financial services business established in the UK can operate across the EU whilst being exclusively licensed and regulated in the UK. This is because the passport is a feature of the single market, which brings with it EU sovereignty, the very thing the referendum result rejects. Further, a solution in which the UK applies EU laws which it has no hand in making or interpreting is clearly unsatisfactory, even for a transitional period. Instead, the UK's Brexit negotiators will be expected to come up with proposals for a new relationship...


 

 

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