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11 Jan, 2021 Author Jon Rees
Bank of England Governor Andrew Bailey has said a deal with the European Union on financial equivalence that left the U.K. as a financial regulatory rule-taker would not be worth having.
Bailey told parliamentarians that if the EU demanded that the U.K. follow its regulatory rules entirely in return for an agreement on equivalence, whereby it judges the U.K. financial rules equivalent to its own and so allows British banks access to the single market, that would be unacceptable. If the price is too high then we can t just go for it whatever. I strongly recommend that we don t become a rule-taker. If the price of that is no equivalence, then I m afraid that will follow, said Bailey in an appearance before the Treasury Select Committee.
A wave of optimism washed over bosses of major British companies in December, ahead of a tightening of COVID-19 restrictions this month, even though many thought it would take a long time to recover fully from the pandemic, a survey showed on Friday.
Britain should not submit to the European Union's financial services rules just to get better access to the bloc's market after Brexit, Bank of England
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U.K. Prime Minister Boris Johnson has admitted that the deal “perhaps [did] not go as far as [he] would like” on the matter. Getty Images
A major chunk of trading in euro-dominated shares has been moving from London to European continental exchanges since the beginning of the week, after the U.K. left the European Union single market, and the two sides are now headed toward uncharted confrontation over the future of European finance.
Financial services weren’t covered by the post-Brexit trade deal struck just before Christmas between the U.K. and the EU, and U.K. Prime Minister Boris Johnson has admitted that the deal “perhaps [did] not go as far as [he] would like” on the matter.
Bank of England Governor Andrew Bailey said on Wednesday that the European Union’s approach to financial services trade with Britain after Brexit was problematic