Andrew Bailey, the head of the Financial Conduct Authority, said that the UK and EU should press on with a so-called equivalence arrangement to enable financial companies to continue trading across the bloc after Brexit, but should not be constrained in areas where there are no common rules.
The UK government argued for a souped-up version of equivalence — an existing legal mechanism by which Brussels grants overseas firms access to the single market in particular areas, provided the rules of their home nation are deemed broadly equivalent — in its white paper on Brexit earlier this summer.
“In Europe, as we will have identical frameworks, there will be a strong case for the UK and the EU to find each other equivalent on ‘day 1’. And we should now work together to put in place the arrangements to achieve this in practice,” Mr Bailey told his counterparts in Vienna. “By committing to this course, together we can also take a decisive step to head off the risk of transitional cliff edges.” [...]
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