EU Financial Services Commissioner Mairead McGuinness said on Tuesday that Brussels would not grant Britain’s financiers access to the bloc before assessing the risks to financial stability – and that to do otherwise would be an “experiment”.
Talks have begun on a memorandum to cover cooperation in financial regulation by the end of March, however Brussels will not consider actual market access until later with the effect on financial stability being a consideration, along with Britain’s intentions about diverging from rules inherited from the bloc.
Britain has said it wants to amend some rules, though not weaken standards. Brussels must decide if UK rules are ‘equivalent’ or aligned enough with the bloc.
“The idea of just granting equivalence to everything and then see what happens is not strategic, in my view. I would regard that as a bit of an experiment that I am not prepared to go along with.”
On Tuesday the European Commission, the EU executive, published a strategy paper outlining how it aims to bolster the role of the euro in a global financial system dominated by the dollar.
Moving other activities such as much of euro derivatives clearing from London to the bloc dovetails with that objective.
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