EU Demands for Unilateral Power Over UK Banks After Brexit
The EU have insisted on taking unilateral control over if and how the banks in the UK will be able to operate after Brexit. On Tuesday ministers will discuss and agree on this matter. Leaders’ summit will be on Friday. Ministers who are responsible for the preparation of the EU’s joint negotiation stance for talks with London with regards to the future ties say that British Financial services companies will benefit from the reviewed and improved equivalence mechanisms.
Therefore, the City of London needs to keep much closer relationship to operate across the bloc will not be met by European negotiators. Once the guidelines of negotiation will be set by the EU leaders at Friday’s summit, both sides will start the talks on the future trading relationship.
Language is also included in the guidelines. Access for British registered firms will be subject to ensuring financial stability and the existing legal structures of the EU. The aim of both sides is the free services trading. The EU firms will be allowed to operate in certain sectors where their supervision regime is judged by the EU to be equivalent to that of the bloc.
Luxemburg as the home to operations for many London based funds operators has been pressing for the EU to be generous to British Registered firms – the EU business will be driving to New York or Asia if the UK is hurt. France and Germany wish to limit London access.
However, equivalence mechanisms and decisions remain defined and implemented on a unilateral basis by the European Union.