Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

UK-EU regulatory dialogue key to post-Brexit financial trade: banking official

UK-EU regulatory dialogue key to post-Brexit financial trade: banking official

Intense dialogue between British and European Union financial regulators must start now or London risks being cut off from the bloc after Brexit, a top banking lobbyist said on Wednesday.
Banks, insurers and asset managers in Britain currently have unfettered access to customers across the EU but this will end after Britain leaves the bloc.

Future EU access for UK financial firms will almost certainly be based on “equivalence”, whereby Brussels deems that a foreign firm’s home rules are aligned enough with those in the bloc to protect financial stability and customers.

Simon Lewis, who stands down as chief executive of the Association for Financial Markets in Europe (AFME) this month after a nine-year stint, said that for equivalence work, good regulatory links were needed.

“You need to have structures in place like the EU-U.S. dialogue, and they probably need to go beyond that,” he said.

“They need to get on with that. That work hasn’t started. The sooner we can have that discussion about how equivalence is going to work and be adapted, the better.”

EU and UK markets watchdogs are, however, at loggerheads over whether swathes of trading in euro-denominated shares can continue in London if there is a no-deal Brexit.

There is also tension over how much EU regulators should be allowed to regulate UK clearing houses with EU customers.

Close regulatory dialogue would help clear up “misunderstandings” and avoid equivalence decisions “going the wrong way”, Lewis said.

While few jobs or activities have moved so far from London to new EU hubs, it was “early days”.

“Banks are looking at how they can minimize the cost of moves by where possible local hires or deferring decisions,” he said.

Much could hinge on what asset managers in London do, with many having opened hubs in Dublin and Luxembourg.

“If over time the asset managers physically move from London, then that will make quite a difference.

“It’s a golden rule of any business that you should be close to your customers. That again is not entirely clear how that is going to play out,” Lewis said.

Banks also need to rebuild public trust shattered by taxpayer bailouts during the financial crisis a decade ago.

“The industry has been seen to have overlobbied on certain issues and there was a degree of distrust about that,” Lewis said.

“There was a feeling that the industry was taking it for granted that its voice would always be heard. The rebuilding of trust in the industry will take quite a long time.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×