ten years later Brexit vote, UK Finance In partnership with law firm Freshfields, it has published a detailed report proposing a new strategic approach to financial sector ties between the UK and the European Union. with title Unlocking Growth Through a Stronger UK-EU Financial Services Partnershipupdate UK Finance He is now calling on both sides to prioritize the sector at the upcoming leaders’ summit and integrate it into broader efforts to restart political relations.
The UK’s financial services sector economic Expansion, cross-border investment and stability for UK and EU businesses and households.
The report provided in-depth information research and discussions with a range of stakeholders, including British, European and international banks, diplomatic officials, policy experts and industry groups, argue for a more meaningful partnership that delivers shared benefits while respecting the autonomy of both parties.
At its core, it is a phased three-phase plan designed to begin with actionable, immediate actions that lay the groundwork for progressively deeper developments. integration shift.
In the short term, over the next two years, the focus should be on making practical improvements to existing frameworks.
This includes taking full advantage of the UK-EU Memorandum of Understanding by transforming the joint Regulatory Forum from a forum for key updates to a platform for proactive alignment on emerging rules and initiatives.
financial services It should become a regular, high-level topic at annual UK-EU summits to ensure consistent high-level engagement.
In addition, both parties need to ensure permanent stability through permanent equivalence decisions for central counterparties (CCPs) in the UK and by eliminating the sunset clause of the EU’s data adequacy decision for the UK.
Looking further ahead, structural reforms over the next four years will address regulatory mismatches and reduce unnecessary barriers to meeting Europe’s financing needs.
Key proposals include negotiating a special mobility agreement for finance professionals, inspired by the UK.Switzerland regulation to facilitate the movement of talented talent.
Authorities must also address the gap in this area. EUThe Capital Adequacy Regulation came into force through the granting of equivalence, which will reduce compliance burdens and operational barriers for companies operating across borders.
Collaboration can be expanded through pragmatic, subject-specific equivalence assessments, as well as experimental collaborative projects such as “competition labs” and shared regulatory sandboxes to foster innovation.
In the longer term, the vision extends to more formal regulation, potentially including a comprehensive UK-EU Financial Services Agreement based on the UK-Swiss Bern framework.
An even bolder ambition involves contributing to a truly integrated pan-European capital markets framework spanning Europe. EnglandEU member states, European Economic Area and European Free Trade Association countries.
Kerstin MathiasUK Finance International Relations Director, UK and EU Although they maintain closely connected financial ecosystems, their formal ties have not yet reached their full potential.
He stressed that neither side wants a return to single market arrangements, but that both could gain significant benefits from smarter cooperation compatible with their own goals and global obligations.
Emma Rachmaninova partner at Freshfields, noted the common goals and commitment to international standards shared by both jurisdictions.
The phased approach aims to strengthen the foundations today while gradually expanding mutually beneficial cooperation without compromising sovereignty.
Marsha de Cordova Member of Parliamentco-chairman England-The EU Parliamentary Partnership Assembly agreed that the report highlights how strengthened partnerships can spur growth and deliver tangible benefits for businesses and economies on both sides. as europe wanders around Despite various economic challenges, this roadmap offers a pragmatic way to leverage the strengths of the interconnected global economy. financial markets.
