Key hurdles in the Brexit negotiations on financial services and future regulation in the UK

Key hurdles in the Brexit negotiations on financial services and future regulation in the UK

This article reviews the key hurdles in the Brexit negotiations on financial services as they came into sharp focus at the end of June 2020. Although the Political Declaration between the UK and the European Union signed in October 2019 clearly sets out the path of the future trading relationship in...

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Udgivet i:URI:https://journals.openedition.org/osb,
Hovedforfatter: Sowels, Nicholas
Format: Article ou chapitre numérique
Sprog:Anglais
Udgivet: Observatoire de la société britannique 2021
Fag:
regulation
Brexit
financial service
competition
Online adgang:Accès Université d'Orléans et IFPM
Accès Université d'Orléans et IFPM
id openedition-oai:revues.org:osb_4813
record_format openedition
spelling openedition-oai:revues.org:osb_4813 https://doi.org/10.4000/osb.4813 urn:doi:10.4000/osb.4813 en https://journals.openedition.org/osb/4813 2021-03-28T01:00:00Z info:eu-repo/semantics/openAccess article info:eu-repo/semantics/article urn:handle:20.500.13089/is5v All rights reserved Key hurdles in the Brexit negotiations on financial services and future regulation in the UK Observatoire de la société britannique Université de Toulon info:eu-repo/semantics/reference/issn/1775-4135 info:eu-repo/semantics/reference/issn/1957-3383 URI:https://journals.openedition.org/osb Sowels, Nicholas regulation Brexit financial service competition This article reviews the key hurdles in the Brexit negotiations on financial services as they came into sharp focus at the end of June 2020. Although the Political Declaration between the UK and the European Union signed in October 2019 clearly sets out the path of the future trading relationship in financial services based on equivalence (i.e. the granting of market access to (certain) financial services by both parties on the basis that their regulation of financial services is broadly equivalent to each other), the British and European approaches to the implementation of equivalence in a future free trade agreement are very different, and are in many ways mutually incompatible. From this point of view, the impasse reached in early summer concerning financial services reflects the broader problems of the UK and the EU reaching a free trade agreement by the end of 2020, and perhaps even for a considerable while later. While “Monty Pythonesque” horse-trading of giving UK-based financial services access to EU markets in exchange of access to British fishing waters by EU fleets cannot be ruled out entirely, the odds of not reaching agreement in financial services are shortening. This will lead to stronger competition between the UK and the Eurozone in the development of financial services, although a dash to de-regulation by the UK seems unlikely. Instead, the London market is more likely to seek a competitive edge by designing future regulation that is both more stringent but also more “stylish”.
collection OpenEdition Journal
language Anglais
format Article ou chapitre numérique
building 0/Bibliothèque numérique/
1/Bibliothèque numérique/OpenEdition Journals/
topic regulation
Brexit
financial service
competition
spellingShingle regulation
Brexit
financial service
competition
Sowels, Nicholas
Key hurdles in the Brexit negotiations on financial services and future regulation in the UK
description This article reviews the key hurdles in the Brexit negotiations on financial services as they came into sharp focus at the end of June 2020. Although the Political Declaration between the UK and the European Union signed in October 2019 clearly sets out the path of the future trading relationship in financial services based on equivalence (i.e. the granting of market access to (certain) financial services by both parties on the basis that their regulation of financial services is broadly equivalent to each other), the British and European approaches to the implementation of equivalence in a future free trade agreement are very different, and are in many ways mutually incompatible. From this point of view, the impasse reached in early summer concerning financial services reflects the broader problems of the UK and the EU reaching a free trade agreement by the end of 2020, and perhaps even for a considerable while later. While “Monty Pythonesque” horse-trading of giving UK-based financial services access to EU markets in exchange of access to British fishing waters by EU fleets cannot be ruled out entirely, the odds of not reaching agreement in financial services are shortening. This will lead to stronger competition between the UK and the Eurozone in the development of financial services, although a dash to de-regulation by the UK seems unlikely. Instead, the London market is more likely to seek a competitive edge by designing future regulation that is both more stringent but also more “stylish”.
author Sowels, Nicholas
author_facet Sowels, Nicholas
author_sort Sowels, Nicholas
title Key hurdles in the Brexit negotiations on financial services and future regulation in the UK
title_short Key hurdles in the Brexit negotiations on financial services and future regulation in the UK
title_full Key hurdles in the Brexit negotiations on financial services and future regulation in the UK
title_fullStr Key hurdles in the Brexit negotiations on financial services and future regulation in the UK
title_full_unstemmed Key hurdles in the Brexit negotiations on financial services and future regulation in the UK
title_sort key hurdles in the brexit negotiations on financial services and future regulation in the uk
publisher Observatoire de la société britannique
publishDate 2021
container_title URI:https://journals.openedition.org/osb
url https://ezproxy.univ-orleans.fr/login?url=https://doi.org/10.4000/osb.4813
https://ezproxy.univ-orleans.fr/login?url=https://journals.openedition.org/osb/4813
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