A Government summary of the UK’s post-Brexit trade deal with the European Union indicates further negotiations will be required to establish market access rules for financial services firms.
The document reaffirms “the integrity of our respective, autonomous
equivalence frameworks,” the Government says.
But specific equivalence deals will be codified in a forthcoming “memorandum of understanding.”
The agreement also, the Government says, lays the groundwork for continued “market integrity.”
The document also includes “ground-breaking” provisions allowing for essentially unfettered access to both markets in legal services.
The agreement largely deals with the goods trade, but many await further clarification on what the deal means for services.
Omar Ali, EY’s financial services chief, said yesterday that the “financial services industry is robust and has shown great agility since the Referendum,” noting that many firms have prepared well.
“Equivalency isn’t just about access; it’s about the cost of doing business,” he warned.
“A lack of equivalence decisions would increase the cost of doing business for financial services firms and the clients they serve.”