TheCityUK has commented following reports in the Financial Times that The EU is ‘threatening sanctions to stop Britain undercutting the continent’s economy through deregulation and tax changes after Brexit’
Miles Celic, Chief Executive Officer, TheCityUK, said,
“If the EU is seeking ways to dictate UK regulatory policy after Brexit, while simultaneously claiming that market access for the UK’s services industry is impossible, then the EU seems to want to have its cake and eat it.
“The politics of Brexit appears to be blinding some on both sides of the Channel to the mutual advantage of a continued close partnership between the UK and the EU.
“The financial and related professional services industry has put forward a detailed, bespoke plan based on mutual regulatory recognition for how future financial services trade can continue with the EU, to the benefit of both sides. This mechanism provides a structured framework to manage regulatory convergence or divergence depending on the sovereign decisions of the UK and the EU, with appropriate checks and balances in place. The economics of this proposal makes sense. Let’s hope the politics start to do so as well.”
The International Regulatory Strategy Group (IRSG) has produced a report, ‘New Basis for Access to EU/UK Financial Services Post-Brexit,’ which makes detailed proposals on the terms of a free trade agreement under which financial services suppliers in the EU and UK would have access to each other’s' markets after Brexit.
Its starting point is that it is in the mutual interest of the EU27, the UK, businesses and the financial services sector for the existing, heavily integrated, cross-border flows in finance to continue in order to sustain jobs and growth across the whole of Europe.
The proposals are intended to achieve a level of mutual market access for EU and UK firms that is as close as possible to the current levels of access that exist for such firms within the EU framework. This is the IRSG's third report setting its thinking on the basis of the future trading relationship between the UK and EU post-Brexit.