Policy discussion on financial services post Brexit
The European Parliament and the European Council have reached a deal concerning the access rules for investment firms wanting to operate in the EU post Brexit. The European institutions will ensure that the UK financial services industry will have to abide by the standards of the European Union in exchange for market access.
The European Commission will be required to assess if non-EU financial centres have the equivalent standards of regulation. Furthermore, Brussels will be keeping an eye on supervisory issues and they will carry out continuous assessments for as long as access to the EU market is authorised.
This move has ‘strengthened and clarified’ the existing equivalence system according to the European Commission. The updated market-access rules will apply to all non-EU countries, and will be relevant for the UK once it leaves the Bloc. The measures are another step in a push by EU policymakers to conclude remaining issues before the European Parliament goes into recess this May.
Representatives of the financial services have warned against making the market-access conditions too strict. The deal will need to be legally adopted by the EU parliament and Council for the new rules to take effect. EU officials expect that they will apply from 2020, depending on when exactly the agreement is finalised.