Brexit Deal Decides the Future of Financial Service in the UK and the EU
Marketers have finally realized the full text of the deal between the UK and Brussels regarding the financial services. The deal struck on the eve of 24th December is a 1,255-page document that has been released now.
The citizens feel that the deal has fallen a little short on the topic of financial services. However, there has been coverage of the financial advice sector. The visitor stay rule includes the personnel in financial services including insurers, bankers, investment brokers. The UK and the EU both agreed, “make their best endeavors to ensure that internationally agreed standards in the financial services sector for regulation and supervision for the fight against money laundering and terrorist financing, and for the fight against tax evasion and avoidance, are implemented”.
In accordance with the equivalence of the UK financial services working in the EU, each country will have to make individual decisions in regards to whether the UK’s standard matches its own rather than an automatic response. However, equivalence rights can be waived faster than before.
The deal between the UK and the EU requires members to, “permit a financial service supplier of the other party established in its territory to supply any new financial service that it would permit its own financial service suppliers to supply in accordance with its law in like situations”.
The non-EU financial institutions wanting to operate with authorization in the EU and the UK branch would have to meet the same conditions the state firms meet. It will not automatically receive recognition just because of the authorization.
The Financial Times state that at the start of the next year, the talks will be held to finalize a draft by March regarding financial service policy. The head of the Brexit advisory firm states that the traders are in favour of the deal and they are working towards the implementation of the deal for six to nine months.
