Last month, Brexit Minister Lord David Frost urged the City of London to “jump in and do its own job” as an equivalency deal with the EU seems out of reach. UK financial firms lost their broad access to EU markets when the Brexit transition period ended on December 31 and must now navigate a patchwork of regulations from individual member states. Former Chancellor Lord Norman Lamont asked Lord Frost at a Lords Committee meeting about progress on equivalency and added that “more and more people in the financial services industry are failing to do not expect much equivalence “.
Lord Frost said the EU was still reflecting on the equivalency assessment documents sent by the UK almost a year ago.
He added: “We are still waiting for the EU to complete these processes.
“Obviously, the city has to go on and do its own thing while waiting for this and this is increasingly happening. “
However, it appears the EU is also facing challenges, as Politico reported in December that Brexit has “crippled” Brussels’ soft power over financial rules.
Simon Gleeson, a lawyer specializing in international capital markets at UK law firm Clifford Chance, said that when Hong Kong and Singapore both adopted EU-compliant market regulations, their main focus was on London.
He told Politico: “If you look at it from their perspective, it was clear that they wanted access to London.
“The question now will be whether the access to Frankfurt and Paris will care enough to change its rules in the future?”
He added that “Brexit is a blow to the extraterritorial ambitions of the EU, especially in terms of financial regulation”.
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Professor Iain Begg of the London School of Economics told Express.co.uk that although the money is being “sucked” from London to EU capitals, there is no need to be. worry.
He said: “It is certainly true that the jobs do not only concern Amsterdam but also Paris and Frankfurt and Dublin has also been a big winner.
“It is financial activity that must be sucked into London’s euro zone, at the same time as the City is reinventing itself and looking for where it has markets in the world.
“At the moment I don’t think there is any clear indication that City are losing from Brexit, but there may be some European centers that are marginal winners. If the net turns into a flow, we can say it is damaging to the UK economy. “