The Government has published its response (dated 27 May) to the EU financial affairs sub-committee on financial services after Brexit. The letter, from John Glen:
- confirms that EU negotiations continue to be a priority for the Government;
- notes that the Government seeks equivalence across all the current regimes (around 40), and says the Government considers this to be in the mutual interest of the EU and UK and that it sees no reason why all regimes cannot be found to be equivalent. It says these bilateral assessments are currently taking place;
- says the Government agrees that the equivalence process will need to be considered, so that there is a proper structure in place in the event of withdrawal or suspension of decisions;
- acknowledges there is a risk to cross-border financial services caused by EU authorities not having in place equivalent structures to the TPR;
- agrees Treasury will need to consider the potential new flexibilities for UK regulators to have greater powers, and to balance this with appropriate parliamentary oversight;
- speaks of the need to agree a structured process for rule changes after the end of the transition period – and says the Government will be making changes to UK laws only for good reason; and
- recognises the international opportunities that Brexit provides.