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British government is ready to propose a financial services plan after Brexit

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The British government is ready to propose a financial services plan after Brexit, which is also preferred by the City of London, but already faces resistance in Brussels. Over the next few weeks Britain is expected to signal that it wants a mutual recognition system to regulate financial services after Brexit. So the country hopes to prevent excluding the City of London from common market.
The Governor of the British Central Bank, Mark Carney, has already stated that the UK and the EU must adopt a mutual recognition system or risk financial services across Europe to be hurt.
Furious that there are no signals yet of how the British government intends to protect the industry, London bankers have drawn up their own plan to keep the single market open. However, Brussels rejected the proposal, which means that bankers may have to rely on the so-called system of equivalence of regulations. This legal mechanism allows non-EU countries access to the single market in limited circumstances. Access is partial and can be canceled in short time.
The government officials say the Mutual Recognition Plan is favored by London because it will keep UK firms’ access to the EU’s single market while allowing some flexibility under European rules. According to one of the representatives, there are reasons to believe that such an outcome is possible.
“The EU has never made a deal with anyone before, with absolutely the same system of equivalence of regulations”, said official from the UK government. “Secondly, trade regulations are absolutely different from a normal trade agreement”, added the source.
However, according to sources, no decision has yet been made on which model will be followed in the negotiations.
Britain is home to the largest number of banks in the world and the largest commercial insurance market. About 6 trillion EUR or 37% of European financial assets are managed by the British capital, which is almost twice as much as the closest competitor Paris.