An EU official told Reuters that the European Union will not ease the access to the default market for foreign finance companies in the UK after Brexit and that the developments in the equilibrium regime will apply to all third countries.
Interpretations from the authorities increased the likelihood that the UK’s financial center banks and insurers would best face cross-border cross-border trade with the UK following the departure of the UK from the EU.
When any transitional period comes to an end, or when a new, special trade deal can be decided, city institutions have already taken back Britain’s expectation of full access to the EU.
EU officials are causing the UK to remain in the block with a “rafted” system, known as “equivalence – direct market access”.
If a foreign company decides that house rules for the EU investors provide the same level of protection as the block itself, access to Brussels is granted. This means that a foreign firm can prevent the cost of establishing a subsidiary in the EU.
EU leaders said in March that Britain could be offered an enhanced state of equivalence by increasing its hopes for a more suitable system for London’s financial companies.
But a senior European Commission official said improvements already in place for Brussels were made.
Because of the anonymity of the authority, “Our legislation is already suitable for equivalence purposes.” Said.
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“We have the most globally open rules to recognize third country regimes, but if changes are needed, we look at cases where the legislation is in sight.”
The reforms are much tighter than fulfilling the requirements to comply with a major foreign financial center that will soon be in front of the door of the races in Brussels simultaneously.
This suggested tighter control of major foreign exchange clearing houses that were traded for EU securities, which would affect the LCH, a unit of the London Stock Exchange.
There will be stricter conditions for foreign investment banks, many of whom are in London.
“From our point of view at the current stage, these are the fundamental changes that must be made,” he said. Said.
UK-based finance companies are opening centers in the EU to deal with the uncertainty of what a Brexit deal might look like.
Japan, Singapore, the United States and other financial institutions in more than 100 cases.
But the UK government and the main financial trading bodies deny the program by saying that it does not cover all financial activities, that it is a continuous politics, and that access can be canceled in a short time.
He would translate EU rules such as Britain, Norway or Switzerland into a “rulemaker” that should be copied.
Britain’s finance minister, Philip Hammond, said in a statement last week that the proposed equivalence changes are about pushing the business world to move to the EU rather than making the unilateral system acceptable.
Although the UK regulators still play a role in trade negotiations before anything else, they remain committed to Brussels weapons.
The commissioner said, “It is true that it is a tacitly decision that can be abolished as it is with the substitutional harmonization in the United States.”
“This is something that goes by the nature of equivalence, and that is not something we intend to change, and it will be legally difficult to change,” he said.
US regulators say that planned equivalence changes can be a taste of what everyone will have.
“The EU’s approach to foreign exchange offices is likely to be a framework that other areas of the EU financial regulation will follow,” said Eric Pan Reuters, director of international relations at the US Commission on Foreign Trade.
The EU represents a development of the EU’s thinking to enable firms providing financial services outside the EU to broaden EU control and lead to a possible conflict with foreign regulators. “
It said that the US was relying on the alleged indifference approach or the house organizer of a company.
“The clearing house proposal is testing the ground for a regional approach to supervision,” Pan said.
Brussels said the CFTC oversees the exchange-traded operations of LCH in London and the EU wants the same.
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