TheCityUK Europe Market Advisory Group and the International Regulatory Strategy Group (IRSG) EU Regulation Committee jointly contributed evidence to The House of Lords European Affairs Committee inquiry into the ‘reset’ of UK-EU relations that the Government is pursuing.
Our evidence provides an in-depth analysis of the current state of UK-EU relations for the financial and related professional services industry, highlighting the importance of this relationship for both economies. It discusses the impact of post-UK withdrawal trading arrangements on the industry, including that of the Trade and Cooperation Agreement (TCA), the challenges and opportunities presented by the proposed "reset," and the key priorities for the financial and related professional services industry in strengthening UK-EU ties. The paper also explores the importance of regulatory cooperation, data adequacy, mobility, and the mutual recognition of professional qualifications in fostering a more dynamic and mutually beneficial partnership between the UK and the EU.
Key priorities for the financial and related professional services industry in strengthening UK-EU ties:
1. Financial services
a. harness common policy agendas to collaboratively address shared challenges
b. provide long-term stability for current cliff-edge issues
c. advocate for openness and agree to avoid imposing further restrictions that inhibit growth and competitiveness
d. maximise the value of the joint EU-UK Financial Regulatory Forum.
2. Mobility
a. agree improved short-term business mobility rules
b. reinstate UK citizens’ uniform access to EU border e-gates
c. include an allocation for EU citizens in the UK’s Youth Mobility Scheme and agree reciprocal arrangements.
3. Data adequacy
Agree a long-term solution, which at a minimum removes the unique sunset-clause associated with the UK’s current data adequacy status.
4. Mutual recognition of professional qualifications
Ensure any improved mutual recognition of professional qualifications framework results in meaningful change and is accompanied by parallel improvements in business mobility.
5. Other specific trade and regulatory issues
Examine trade and regulatory measures for the financial and related professional services industry introduced since the UK’s departure that appear at odds with General Agreement on Trade in Services commitments