by Hugh Jones
LONDON (Reuters) – European Union regulators on Wednesday formally adopted a draft memorandum of understanding (MoU) that would allow Britain and its regional financial regulators to work more closely, albeit without market access. announced that it did.
The UK has left the EU, almost severing the previously free access of the financial sector to the EU.
As part of the terms of the UK’s departure from the EU, the EU agreed to formally enter into cooperation between financial watchdogs, but that was put on hold by Brussels following disagreements between the EU and the UK over Northern Ireland.
This conflict was resolved by the Windsor Framework.
The European Commission on Wednesday adopted a draft memorandum of understanding, but said it still needs final political approval from EU countries before it can sign it on behalf of the EU.
“Our relationship and future are based on our shared commitment to maintaining financial stability, market integrity and the protection of consumers and investors,” said EU Financial Services Commissioner Mairead McGuinness in a statement. We are confident that it will build our involvement in financial services.” .
The MoU would create a joint EU-UK financial regulatory forum similar to the one the EU already has with the US.
“The memorandum does not address access to the single market for UK-based companies or access to the UK market for EU companies, nor does it prejudge the adoption of equivalence determinations,” the Commission said. rice field.
The EU has granted London derivatives clearing houses “equivalent” or EU market access until the end of June 2025.
Meanwhile, the EU has proposed legislation to force banks and asset managers in the EU to move some of their liquidations, which have not yet been decided, from London to the EU, although some industry insiders have We anticipate greater equivalence in the field. Please complete the form after June 2025. (Reporting by Huw Jones, Editing by Paul Simao)