The European Union's executive body said it has formally adopted a draft memorandum of understanding (MoU) to allow financial regulators from Britain and the bloc to cooperate more closely, though stopping short of market access.
Britain's EU exit largely severed its financial sector's previously unfettered access to the bloc, raising concerns over London's role as a global financial centre.
As part of Brexit terms, the EU agreed to formalise cooperation between financial watchdogs. However, that was put on hold Brussels following disagreements between the bloc and Britain over Northern Ireland, now resolved through the Windsor Framework.
The European Commission said on Wednesday is has adopted the draft MoU, though it still needs final political endorsement from EU states.
"I am confident that our relationship and future engagement in financial services will be built on a shared commitment to preserve financial stability, market integrity, and the protection of consumers and investors," Mairead McGuinness, the EU's financial services commissioner, said in a statement.
The MoU will create a joint EU-UK Financial Regulatory Forum, similar to one the EU already has with the United States.
"The MoU does not deal with the access of UK-based firms to the Single Market - or EU firms' access to the UK market - nor does it prejudge the adoption of equivalence decisions," the Commission said.
Reuters
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