UK to Seek EU Mutual Recognition Deal For Financial Services
Britain’s government is ready to push for a mutual recognition system to regulate financial services after it leaves the EU in order to preserve the City of London’s access to the bloc, Reuters reported on Friday.
Under the proposal, Britain and the European Union would recognize each other’s regulatory and supervisory regimes, an option long favored by the financial services industry, the FT said.
British finance minister Philip Hammond was expected to back the proposal in a speech in coming days.
No one was immediately available to comment at the ministry.
Bank of England Governor Mark Carney has previously said Britain and the EU should adopt a system of mutual recognition or run the risk of a damaging hit to financial services across Europe.
A dispute resolution mechanism would be part of the plan, the FT said.
Such a proposal is likely to be challenged by the European Commission which has said Britain cannot pick and choose which parts of the EU’s single market it can retain.