Lords seek way for banks to maintain EU access and keep stability after Brexit

 
Catherine Neilan
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Several banks have announced plans to open offices in the EU due to Brexit (Source: Getty)

A Lords committee has launched an inquiry into how the UK's financial services industry can keep its access to the rest of the European Union after Brexit.

The EU financial affairs sub-committee is to consider the impact Brexit will have on the stability and effectiveness of the existing regime, priorities for a transitional arrangement and what scope there is for the UK to amend its current regime.

It will also consider how the UK can maintain its influence in international standard-setting after leaving the bloc in 2019.

Baroness Falkner of Margravine, who chairs the committee, said: “After Brexit, the UK will in principle be free to make its own choices on how to regulate, and supervise, the domestic financial services industry.

“This freedom, however, comes with a major caveat: UK-based financial services firms do a significant amount of business with the EU-27, and vice versa. In order to ensure financial stability and preserve market access it will be necessary for there to be a degree of cooperation between the regulatory and supervisory regimes in the UK and EU, and for the UK to maintain its influence in international standard-setting. We would like to explore the options for such engagement.

“We encourage, and welcome, submissions of written evidence from anyone with knowledge of and an interest in financial regulation and supervision.”

Banks and insurers have started to announce their plans to open new subsidiaries in the EU in order to avoid any fallout from the departure.

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