Post-Brexit deal: what fate for London's financial services?

Even outside the European Union, the City intends to remain a major financial center.

British Finance Minister Rishi Sunak assures the City has a future.

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The post-Brexit trade deal finally found, what will happen to financial services?

The fate of the City of London is not recorded in the text regulating future relations between the United Kingdom and the European Union.

But even if the City have long thought they could preserve the rights given to it by the “European passport”, which allows it to process transactions in euros, that too must change.

Negotiations are in fact continuing in parallel, and until next March to define a memorandum of understanding concerning the sector.

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Even outside the European Union, the City intends to remain a major financial center.

Moreover, the approach of the December 31 deadline did not lead to the much-announced exodus of financial executives.

The City has a future, said British Finance Minister Rishi Sunak on Sunday.

“ 

Now that we have left the European Union, we can do things a little differently and we will get down to it.

For example, by examining how to make the City of London the most attractive place for new businesses around the world. 

Rishi Sunak recalls that the agreement also provides for a stable regulatory framework which guarantees to continue to dialogue closely with European partners.

“ 

I think that should reassure everyone, as does the fact that we have an ambitious vision for the City of London and the financial services of the country in general. 

"

From December 31, the City will be considered as part of a jurisdiction of a third country.

What is being negotiated is preserved access for British financial institutions to European markets through the system of equivalences.

Through this system, the EU ensures that the regulations of the British partners are at least as strict as its own.

Another huge project looming.

To read: EU-UK Brexit Agreement: review of four years of negotiations

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  • Brexit

  • United Kingdom

  • European Union

  • Finance

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