London
02 February 2017
Reporter: Mark Dugdale

Brexit whitepaper hints at ‘third-country’ status


The UK could adopt ‘third-country’ status in financial services upon its exit from the EU, according to the long awaited Brexit whitepaper.

The whitepaper described but did not discuss in detail “a range of provisions across many different pieces of EU financial regulation” that allow firms in member states “to provide financial services across the EU under a common set of rules and a single authorisation from their regulator”.

“Both UK and EU firms benefit from [passports]”, the whitepaper affirmed, pointing out that “there are over 5,000 UK firms that utilise passports to provide services across the rest of the EU, but around 8,000 European firms that use passports to provide services into the UK”.

The whitepaper said, without a firm commitment: “There are provisions that allow firms from ‘third countries’ to provide services across the EU, provided that their relevant domestic regulations have been deemed equivalent to those of the EU.”

“In our new strategic partnership agreement we will be aiming for the freest possible trade in financial services between the UK and EU member states.”

UK members of parliament voted yesterday in favour of triggering Article 50, which must happen before exit negotiations with the EU can begin.

The UK plans to formally announce its intention to leave the EU in March. Negotiations on the manner of its exit must be completed within two years.

More regulation news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
US Volcker Rule not fit for purpose, says SIFMA
22 September 2017 | New York | Reporter: Drew Nicol
The US Volcker Rule is too broad, excessively complex, and uniquely prescriptive, according to the Securities Industry and Financial Markets Association
FCA takes pragmatic approach to MiFID II deadline
21 September 2017 | London | Reporter: Drew Nicol
The UK’s financial conduct authority has indicated it will accept a soft roll out of the second Markets in Financial Instruments Directive in January
Eurex to offer MiFID II simulations ahead of January deadline
08 September 2017 | Frankfurt | Reporter: Drew Nicol
Eurex is set to offer its clients access to a simulation trading environment later this month ahead of the MiFID II January deadline
CFTC extends position limit relief to two years
14 August 2017 | Washington DC | Reporter: Mark Dugdale
The CFTC will not enforce certain position aggregation requirements until 12 August 2019
First MiFID II position limits are set
14 August 2017 | Brussels | Reporter: Mark Dugdale
Proposed position limits on rapeseed, corn and milling wheat set in France are consistent with the objectives established in MiFID II
US regulators to work together on Volcker Rule
28 July 2017 | Washington DC | Reporter: Stephanie Palmer
Five US federal financial regulatory agencies are coordinating the efforts to review the regulatory treatment of certain foreign funds under Section 619 of the Dodd-Frank Act, better known as the Volcker Rule
FCA consults on SMR extension
26 July 2017 | London | Reporter: Stephanie Palmer
The UK’s Financial Conduct Authority (FCA) has outlined its proposals for extending the Senior Managers and Certification Regime to almost all regulated financial services firms
More regulation news