British Minister of FinancE: Brexit an Opportunity to Rethink The Offer of Financial Services

Brexit is an opportunity to rethink the offer of financial services, said on Sunday the British Minister of Finance, who promises cooperation with the European Union on the subject, which is not addressed in the trade agreement concluded Thursday between the United Kingdom and the European Union.

As of January 1, UK-based financial institutions will no longer have automatic access to the EU single market.

“Now that we have left the European Union, we can do things a little differently (in financial services),” Rishi Sunak told reporters.

He said the UK and the EU would continue to engage in close dialogue on this issue, especially on the issue of “equivalencies”.

Under this system of “equivalences”, access to EU markets will not be granted to UK-based banks, insurers and other financial firms, unless UK regulations are deemed to be “equivalent” by Brussels or as strict as the regulations in force in the Union.

A separate memorandum of understanding on finance is to be negotiated between London and Brussels by March 20210, with the City intended to remain a major financial center despite Brexit.

The exodus of London financial executives to Europe, which some expected, has not really materialized, even if financial institutions have transferred some of their activities to Frankfurt, Paris or Dublin.