House of Lords committee calls for UK-EU financial services agreement
A House of Lords committee has called for the UK to negotiate better EU access for the financial services industry post-Brexit.
The Lords’ EU Services Sub-Committee said today that there will be “real problems” for financial services professionals “whose qualifications are not recognised in the EU under current arrangements”.
The City lost its pre-Brexit access to EU markets on 1 January when the UK left the single market and customs union.
Brussels can grant direct market access for foreign financial services firms if it deems their home market rules are similar to the EU’s own standards, a designation known as equivalence.
However, this is seen as unlikely now for as Rishi Sunak has indicated the UK will diverge from EU regulations, with a recent review by Lord Jonathan Hill proposing changes to the UK’s share listing regime.
Hill also called for a change in regulations to allow Special-purpose acquisition company (Spacs) to go public in London.
The House of Lords’ EU Services Sub-Committee said equivalence should still be the goal.
“There will be real problems for UK professionals whose qualifications are not recognised in the EU under current arrangements,” they said.
“The [UK-EU trade deal’s] business mobility provisions haven’t been fully tested because of Covid-19 travel restrictions, but are a key concern for service providers. O
“The services sector is at the heart of the UK economy, so it is essential that the government and EU makes improvements to smooth UK-EU services trade.”