BRUSSELS / LONDON (Reuters) – The European Union is ready for all kinds of Brexit, with no EU access to the UK’s financial sector, a document seen by Reuters of a candidate for head of financial services said.
After 31 December, when a transition deal occurs before a full-blown Brexit ends, financial services companies in the UK must reach the EU through their “equivalence” system.
The EU has already given temporary access to UK clearing houses under this regulatory regime before January.
EU Financial Services Commissioner post candidate Mared McGinnas said that since January there will be significant changes in financial services between the UK and the EU, whether there are UK-EU negotiations that reach a free trade agreement this week.
In a further written reply to the European Parliament’s parliament’s confirmation hearing on Friday, “As tensions have increased in the overall EU-UK negotiations, we continue to prepare for all possible scenarios, including further There is no equivalent scenario. “
“Market participants are requested to take all necessary steps to prepare for all possible outcomes by 2020,” he said.
“It will not be business as usual, in any case, UK financial services firms will lose the benefit of financial services passports.”
McGinness, a veteran Irish center-right member of the European Union UK, said that the EU is currently conducting an “unprecedented” practice of parallel assessments of several equivalent areas in relation to the UK.
But Britain’s intention to break away from some EU rules “would naturally result in those consequences”, she also said in a written reply.
McGinness said any equivalent would come with strict terms.
“Should equivalence be given in a particular area, it would need to be accompanied by … commitments not to deviate from the EU framework for the period covered by the equivalent decision,” she said.
He said the EU champion would continue to do open trade but would not be naive to protect his interests.
Reporting of Francesco Guaracio in Brussels and Hua Jones in London, editing by Caroline Cohan and Jane Miman