UK News

Brexit information: EU move against British banks denying equivalence backfires | UK | News

Britain and the EU have very related monetary rules and after Brexit the UK granted European corporations equivalence, or equal entry, in a spread of areas. However Brussels refused to reciprocate creating a significant problem for British banks.

However in response to Nikhil Rathi, who runs the UK’s Financial Conduct Authority (FCA), this resolution could backfire on the EU.

He additionally insisted Britain won’t search equal European monetary market entry at any worth.

Instead Mr Rathi instructed the UK will use post-Brexit freedoms to make its monetary providers extra environment friendly.

During a speech to the Association of Foreign Banks he commented: “EU banks are now no longer able to offer to their clients full access to all pools of global liquidity for the trading of interest rate swaps and certain credit derivatives, as UK venues have retained material market share in various products.

“This loss of access to liquidity reduces competitive choice in the market for UK and rest of the world clients and, unsurprisingly, it has been reported that some EU banks have lost market share in these market segments.

“This means higher costs for EU firms, with a direct impact on the prices they can offer to their clients.

“And inevitably, UK and rest of the world clients, are left with no choice but to plan for further contingencies in which EU firms are unable to service a wider range of their needs.”

Whilst Britain formally left the EU in January 2020 it remained intently tied to the bloc till December throughout the Brexit transition interval.

READ MORE: Sturgeon’s hope to build French partnership undermined by fishing fury

Amsterdam changed London as Europe’s greatest share buying and selling hub.

However Mr Rathi insisted Britain won’t “target equivalency at any cost”.

Instead the main target shall be on “increased flexibility” with post-Brexit reforms.

He added: “We will use our autonomy to regulate for the benefit of UK financial markets and consumers.”

According to TheCityUK, an business physique, monetary service exports are value £56bn to the British financial system.

As a part of Mr Johnson’s Brexit deal some customs checks have been launched on commerce between Northern Ireland and the remainder of the UK.

This has infuriated unionists who worry it’ll undermine the union.

A wave of loyalist rioting final month was blamed partly on anger at this subject.

The EU was decided to keep away from any checks on items travelling between Northern Ireland and the Republic of Ireland.

It argued this may undermine the Good Friday Agreement which introduced many years of battle to an finish.

Back to top button