UK banks call for “mutual recognition” deal with EU after Brexit – 11th September 2017
Britain and the European Union should accept each other’s rules governing financial services in a “flexible” trade deal that offers unfettered market access to big banks but protects small investors, according to proposals made in a draft industry document seen by Reuters on Friday. UK Finance, a trade body that represents British banks like Barclays, HSBC, Lloyds and RBS, said in its 91-page proposal on “Financial Services in a new EU-UK Trade Agreement” that “mutual recognition” should be an “overarching principle”. Banks and other financial firms authorised in the UK would then be allowed by the bloc’s regulators to continue serving customers in the EU from Britain after Brexit in 2019. The quality of access would depend on how “sophisticated” or financially literate customers were. UK Finance declined to comment on a private report which is now being “tested” on market participants.
Huw Jones, Reuters