UK, EU to talk over financial cooperation

Wednesday 13 January 2021 13:28 CET | News

The UK has announced talks with the European Union in January 2020 on how regulators will cooperate over financial services after Brexit has been completed, according to Bloomberg.
The financial services industry was largely side-lined in the trade deal struck with the bloc by Prime Minister Boris Johnson just before Christmas 2020, but the two parties agreed to broker a Memorandum of Understanding on regulatory cooperation by March 2021. The end of Brexit transition arrangements in December 2020 threatens the City of London’s dominant position in financial services, which accounts for about 7% of the UK’s economic output. 

The MOU is intended to set the framework for regulatory cooperation to allow for ‘bilateral exchanges of views and analysis relating to regulatory initiatives and other issues of interest’. It also seeks to establish a process for establishing the adoption, suspension, and withdrawal of so-called ‘equivalence’ decisions. This process, which is separate from the MOU talks, involves the two parties accepting their rules are as strict as each other’s, allowing banks and other financial companies to do business seamlessly across borders.

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Keywords: UK, EU, finance cooperation, financial services, regulators, Brexit, Memorandum of Understanding, MOU
Categories: Banking & Fintech
Countries: Europe
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Banking & Fintech

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