CITY OF LONDON'S FAVOURED BREXIT PLAN TO BE PUSHED BY UK

February 18, 2018 - 73 views

 

Britain’s government is ready to push for the kind of Brexit plan for financial services that the City of London has long favoured

London is expected to signal in the next few weeks that it wants a mutual recognition system to regulate financial services after Brexit, in the hope of preventing a hit to the City of London’s access to the bloc, they said.

“It is obviously in everyone’s interest to not just totally turn on its head the pan-European banking system,” one of the officials said. “Everyone has a lot to lose from this if we can’t get a deal.”

Bank of England Governor Mark Carney has previously said Britain and the EU should adopt a system of mutual recognition or run the risk of a hit to financial services across Europe.

With little more than a year to go before Brexit, many banks have begun activating contingency plans to move some operations out of the country.

Frustrated that there was little sign of how Britain’s government intended to protect the industry, London bankers came up with their own plan to the keep the single market open by Britain pledging to honour global standards.

But Brussels has rejected that industry proposal, meaning London’s bankers may have to rely instead on what is known as the equivalence system for regulation.

 

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