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<p>On Tuesday 26<sup>th</sup> February, European policy-makers reached a political
agreement on the Investment Firms Review (IFR) which is part of the Capital Markets
Union.</p><p> </p><p>The Government welcomes the agreement as it supports a more proportionate
regulatory regime, upholding market integrity and financial stability, and which will
also benefit the industry and ultimately the wider economy.</p><p> </p><p>After the
UK’s departure from the EU, EU market access for UK investment firms will be dependent
on a positive equivalence determination from the EU. The European Commission has said
that in a no deal scenario, it will prioritise financial stability and the EU’s own
interests. However, as the Economic Secretary said on 12 February<sup><sup>[1]</sup></sup>,we
can see no reason why the UK and the EU would not be able to find each other equivalent
in any scenario. We leave with the same rulebook and both have third country equivalence
frameworks to support cross-border activity.</p><p> </p><p>[1] https://hansard.parliament.uk/commons/2019-02-12/debates/0689c6cb-2bc5-4e53-a4f7-e2b3ecb2fa8f/DraftEquivalenceDeterminationsForFinancialServicesAndMiscellaneousProvisions(AmendmentEtc)(EUExit)Regulations2019</p><p>
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