‘A real blow’: The City of London is furious with the government’s Brexit plan for finance


City of London

Major lobby groups for the City of London are unhappy with the government’s plans for the UK’s financial services sector after Brexit.
The City of London Corporation described the paper as “a real blow for the UK’s financial and related professional services sector.”
The government says it will seek a system of regulatory equivalence, rather than the previously mooted mutual recognition arrangement.

Major City of London lobbying groups are unhappy with the government’s plans for the UK’s financial services sector after Brexit, following the release of Prime Minister Theresa May’s white paper on exiting the EU.

Under current rules, the UK uses the financial passport — a set of rules and regulations which allow UK-based finance firms to trade with and sell their services into Europe — but stands to lose those rights after Brexit. As such, a new plan for the financial services sector must be created.

Two groups — the City of London Corporation, and The City UK — have expressed their displeasure at new plans from May’s government, which will seek a system of regulatory equivalence, rather than the previously mooted mutual recognition arrangement.

“Today’s Brexit white paper is a real blow for the UK’s financial and related professional services sector,” the City of London’s policy chairman Catherine McGuinness said in a statement.

“With looser trade ties to Europe, the financial and related professional services sector will be less able to create jobs, generate tax and support growth across the wider economy. It’s that simple,” McGuinness continued.

“The sector has been clear since the referendum: Equivalence in its current form is not fit for purpose so any ‘enhancements’ to this regime would have to be substantial.”

McGuinness’ thoughts were backed up by Miles Celic, the head of The City UK, which represents the whole of the UK financial services industry. Celic described the government’s plans …read more

Source:: Business Insider

      

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