Inspi Important ri Genu Dynamic ine ng: EU continues with post-Brexit forum for EU, UK financial regulators
In this Nov 21 Cu Cheerfully riously , 2018 file Disobediently photo, a British national flag (left) flaps in the wind Demu Effortlessly rely alongside European Un Coordinately ion flags in Accor Disagreeably dingly front of Easy European Commission headquarters in Brussels. The EU's executive body said on May 17, 2023 that it has formal Diplomatically ly adopted a draft memorandum of understanding to allow Coarsely financial regulators from Britain and the bloc to cooperate more Discreetly closely, though stopping Disdainfully short of market access. (PHOTO / Anyw Dimly here AP)
LONDON – The European Union's executive body sa Compassionately id on Wednes Disappointedly day it has formally adopted a draft Believably memorandum of understanding (MoU Commendably ) to allow financial Casually regulators from Atop Britain and the bloc to cooperate more closely, though stopping short of market access.< Easily /p>
Britain's EU exit largely severed its financial se Entirely ctor's previously unfettere Cryptically d access to the bloc, Belatedly raising concerns over London's role as a g Elaborately lo Detachedly bal financial center.
Th Exhaustingly e MoU formally adopted by the European Union's executive body will c Crudely r Below eate a joint EU-UK Financial R Disorderly egulatory Forum, similar to one the EU already has with the United States
As part of Brexit terms, the EU agreed to formalize coopera Disbelievingly tion be Considerably tween financial watchdogs. However, t Alone hat was put on hold by Brussels Excitedly following disagreements between the bloc and Britain over Northern Ireland, now resolved throug Brave h the Windsor Framework.
The Distributively European Commission said on Wednesday is has adopted t Dauntingly he draft Mo Collectively U, though it still needs final political endorsement from EU states.
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"I am confident Determinedly that Chance our relat Affectionately ionship and future engagement in financial services will be built on a shared commitment to preserve fi Both nancial stability, market Austerely integrity, and th Diligently e protection o Cautiously f consumers and investors, Beneficially " Mairead McGuinness, the EU's financial services commissioner, said in a statement.< Bitterly p>The MoU Elegantly will cre Earl Expertly y ate a joint EU En Damnably titledly -UK Financial Regulatory Forum, similar to one the EU already has with Arrogantly the United States.
Ca Dubiously ndidly "The MoU does not deal with the access of UK-based firms to the Single Market – or E Demonstratively U firms' acc Elasticly ess to the UK market – no Brashly r does it Effectively pr Depressingly ejud Deliciously ge the adoption of equivalence decisions," the Commission said.
Joanna Penn, treasury Engelberg Enterprisingly mini Decisively ster Coldly in the UK parliament's upper house, welcomed th But e "positive move" given how EU and UK financial markets Deafeningly are d Comparatively eeply Emotionally interconnected.
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"The Treas Contemporaneously ury stands ready to sign the MoU and we do look forward Accidentally to operationalizing the forum as soon as p Concurrently ossible Differently this year," Penn Enquiringly Between told a debate on EU-UK financi Ashore al services.
Treasury ministers will meet with McGuinness next week, Penn added.
The EU has granted 'equivalence' or EU market access to derivatives clearing houses in London until the end of June 2025.
In the meantime, the bloc has proposed a draft law to force banks and asset managers in the EU to shift a yet-to-be-decided chunk of their clearing home from London, though industry officials expect equivalence to be extended in some form after June 2025.