Brexit offers Britain chance to do financial services differently - minister

LONDON (Reuters) - Brexit offers Britain a chance to do things differently in financial services, finance minister Rishi Sunak said on Sunday, but it will co-operate with the European Union on an approach to the sector despite little detail on the topic in its trade deal. From Jan. 1, British-based financial services groups lose automatic access to the EU's single market, and both sides have said new market access must be negotiated outside the trade agreement in specific equivalence deals

Reuters December 28, 2020 01:05:09 IST
Brexit offers Britain chance to do financial services differently - minister

Brexit offers Britain chance to do financial services differently  minister

LONDON (Reuters) - Brexit offers Britain a chance to do things differently in financial services, finance minister Rishi Sunak said on Sunday, but it will co-operate with the European Union on an approach to the sector despite little detail on the topic in its trade deal.

From Jan. 1, British-based financial services groups lose automatic access to the EU's single market, and both sides have said new market access must be negotiated outside the trade agreement in specific equivalence deals.

"Now that we've left the European Union, we can do things a bit differently (in financial services)," Sunak told broadcasters.

Britain and the EU clinched a trade deal on Thursday, but Prime Minister Boris Johnson has admitted it is an accord which does not have as much as he would have liked about the financial services sector and regulatory equivalence.

Under a system known as equivalence, access to EU markets will not be granted to banks, insurers and other financial firms based in Britain unless their home rules are deemed by Brussels to be "equivalent", or as robust as regulations in the bloc.

The two sides will aim to agree a memorandum of understanding on regulatory cooperation in financial services by March 2021, and Sunak said that such language should provide reassurance.

"This deal also provides reassurance because there's a stable regulatory co-operative framework mentioned in the deal," he said.

"I think (that) will give people that reassurance that we will remain in close dialogue with our European partners when it comes to things like equivalence decisions."

(Reporting by Alistair Smout; editing by Jason Neely and Louise Heavens)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.