Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Britain, EU edge forward with financial services forum plan

Stock MarketsFeb 23, 2021 17:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. EU Commission President von der Leyen and British PM Johnson meet in Brussels

By Huw Jones and Carolyn Cohn

LONDON (Reuters) - Plans by Britain and the European Union to set up a new financial cooperation forum by the end of March have made some progress but this will not automatically lead to market access, senior officials said on Tuesday.

Britain's trade deal with the EU that came into effect when it left the single market on Dec. 31 does not cover financial services, leaving the City of London largely adrift from its biggest export market. Trading in euro denominated shares and swaps has already left London for the EU and New York.

A forum for financial regulators from Britain and the EU to exchange views would help to improve relations. A forum has already been set up for EU and U.S. market watchdogs.

"We are in the process of exchanging texts and looking at that, and in due course we will come to a resolution," John Glen, Britain's financial services minister, told an insurance conference on Tuesday.

Separately, Mairead McGuinness, the EU's financial services commissioner, said "informal engagements" regarding a memorandum of understanding on regulatory cooperation were now taking place.

"Once we agree on our working arrangements, we can turn our attention to resuming our unilateral equivalence assessments," McGuinness, speaking at an online event at the European Parliament, said.

Glen said the EU's equivalence assessments would not be part of the MoU. "That is a process we can't control," he said.

The EU can grant direct market access for foreign financial services companies if it deems their home market rules to be equivalent or aligned closely enough to the bloc's own regulations.

Julian Adams, director of public policy and regulation at insurer M&G, said Brexit offers Britain an opportunity to have "fit for purpose" insurance capital rules.

"My priority would be to get that right, not to focus on equivalence per se, because I think if you don't do that you are allowing yourselves to be dictated to essentially by European policy setting the agenda," Adams told the insurance conference.

The EU has only granted two temporary equivalence decisions for clearing and settling trades for Britain.

"We consider our interests and will only take equivalence decisions that are in the EU's interests. There cannot be equivalence and wide divergence," McGuinness said.

Britain, EU edge forward with financial services forum plan
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email