May threatens financial centre model in Brexit speech

Author: Tom Young | Published: 17 Jan 2017

Market participants have interpreted UK Prime Minister Theresa May’s speech on Britain’s departure from the EU as a threat to pursuing a so-called free market financial centre model if access via equivalence is not granted.

The UK will leave the EU’s single market and instead pursue a 'new and bold’ free trade agreement, according to May in a speech today. The announcement was unsurprising to many London-based financial markets participants, who anticipated the removal of single market membership following the referendum vote in June last year.

May said that she wanted a customs agreement with the EU while rejecting the common external tariff that prevents Britain from negotiating separate trade deals with third countries.