Business News
June 2, 2020 / 6:38 PM / Updated a day ago
Britain, EU clash over financial market access: diplomats
Gabriela Baczynska, Huw Jones
BRUSSELS/LONDON (Reuters) -
Britain wants binding commitments from the European Union on financial market access to avoid the country’s finance industry suddenly being cut off from the bloc, a request Brussels has rejected, EU officials and diplomats said.Britain left the EU in January and a transition period ends in December, when future access for banks, insurers and asset managers will be based on “equivalence,” a limited form of access used by the United States, Japan and Singapore.
Brussels grants market access to any “third country” if it deems its rules are equivalent or as robust as those in the EU.
But Britain wants special treatment to ensure its finance industry has more predictable access to the EU, which is Britain’s biggest financial services export market, worth about 26 billion pounds ($32.58 billion) annually.“The UK is seeking co-management of financial equivalence decisions,” an EU diplomat said on Tuesday.
“They want an in-built consultation process so that unilateral revoking of any licences would not be as easy as it is for third countries currently,” the person said.
https://www.reuters.com/article/us-britain-eu-finance-idUSKBN2392ETHmmm.