EY polls finds bankers, money managers expect equivalence; Few executives say their firms plan to move more staff to EU
London financiers are keeping the faith that despite being left out
of the Brexit trade agreement, their industry can win back some access
to the European Union in the next round of talks.
In
a poll of hundreds of executives at banks, money managers and insurers
by the consulting firm EY, 76% said they expected the EU would grant
some form of equivalence decisions, opening the doors to more market
access. An even more optimistic 8% of those polled expected a sweeping
equivalence pact, allowing London bankers to do many forms of trading.
The British government said Tuesday that it will start a new
round of talks with the EU on regulatory cooperation. According to Prime
Minister Boris Johnson’s spokesman, the first step will be a memorandum
of understanding on regulatory cooperation, which the U.K. hopes to
reach by March.
Some financial firms are hoping that “equivalence decisions
could form part of, or rapidly follow” that initial agreement, said John
Liver, a U.K. financial-services partner at EY. Few firms have plans
for significant staff relocations from the U.K. to the EU.
The EU has cautioned, however, that London shouldn’t
expect quick decisions, and that the talks could drag on -- especially
if the U.K. diverges from European rules.
While
the U.K. started 2021 with an almost identical set of rules as the bloc
following a post-Brexit transition period, British officials are
contemplating modifications in a number of areas. Chancellor of the
Exchequer Rishi Sunak has hinted the potential changes could become a “Big Bang 2.0,” akin to Margaret Thatcher’s deregulation in the 1980s....
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