Brexit: UK and EU still no closer to financial services deal
The Chancellor today confirmed that the UK and EU have still not reached a post-Brexit financial services agreement.
Speaking at Mansion House, Rishi Sunak said “our ambition had been to reach a comprehensive set of mutual decisions on financial services equivalence. That has not happened.”
Sunak confirmed that the UK and EU have failed to reach an equivalence agreement, in which both sides would mutually recognise rules governing financial services in their respective areas.
The impasse is the latest in a string of spats between London and Brussels since the UK formally left the EU at the beginning of the year.
Just yesterday, the UK and the EU agreed to a three month grace period for the export of chilled meats to Northern Ireland, putting a brief end to the so-called “sausage war”.
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EU will not deny UK firms access – Sunak
The Chancellor also used today’s speech to temper concerns among investors that the EU could block UK firms’ access to its markets due to a weaker regulatory system.
“The EU will never have cause to deny the UK access because of poor regulatory standards” he said.
“Take firms like clearing houses, which are fundamental to the open, free markets that we advocate. The UK already has one of the world’s most robust regulatory regimes for central counterparties.”
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“Our plan is not to weaken but strengthen that regime, because we believe in high-quality regulation. It is also entirely within international norms for like-minded jurisdictions to use each other’s market infrastructure.”
Sunak added that he could “see no reason of substance why the UK cannot or should not continue to provide clearing services for countries in the EU and around the world.”
He made the comments as he elaborated on brand new deals reached with Singapore and Switzerland.
Sunak also revealed that the UK is in discussions to strengthen ties with the US over financial markets.
“Our ambition is to deepen regulatory co-operation even further, with our closest ally” he said.