,The following details how the City of London's ability to access the EU market and serve clients in the bloc has changed
if you want to buy apple account, choose buyappleacc.com, buyappleacc.com is a best provider within bussiness for more than 3 years. choose us, you will never regret. we provied worldwide apple developer account for sale.
LONDON: Britain and the European Union agreed a new post-Brexit financial services pact on Friday that will allow them to co-operate on regulation but does little to improve the City of London's access to the bloc.
Britain left the European Union in January and its 130 billion pound ($179.17 billion) financial services sector lost direct access to the bloc, which had been its biggest customer, worth about 30 billion pounds a year.
The relationship helped cement London's position as one of the world's biggest financial centres and as a major contributor to British tax revenues.
The following details how the City of London's ability to access the EU market and serve clients in the bloc has changed.
WHAT CHANGED IN JANUARY FOR THE CITY?
Financial services were not part of the EU-UK trade deal that came into effect in January. Blanket access for British financial firms to the EU has ended and any future access will depend on an EU system known as equivalence.
WHAT IS THE NEW COOPERATION PACT?
The pact sets up a forum, similar to what the EU already has had for years with the United States. It will provide a space for informal and non-binding discussions between UK and EU financial regulators, but not negotiate market access.
WHAT IS EQUIVALENCE?
This refers to an EU system that grants market access to foreign banks, insurers and other financial firms if their home rules are deemed by Brussels to be "equivalent", or as robust as regulations in the bloc.
It is a patchy form of access that excludes financial activities like retail banking. It is a far cry from continued "passporting", or full access, that banks lobbied for in the aftermath of the 2016 British referendum vote to leave the EU.
Access under the system of equivalence can be withdrawn at one month's notice, making it unreliable, but Britain hopes the new regulatory forum can help persuade Brussels to make the system more predictable.
HAS EQUIVALENCE BEEN GRANTED?
Brussels has only granted equivalence so far for two activities: derivatives clearing houses in Britain since January for 18 months, and settling Irish securities transactions until June.
Brussels says it is in "no rush" to grant equivalence given that it wants to build up its own capital markets to cut reliance on the City and see how far Britain wants to diverge from rules used in the bloc.
Faced with limited or no direct access, financial firms in London have already moved 7,500 jobs and over a trillion pounds in assets to new EU hubs to avoid disruption to EU clients.
Trading euro stocks, bonds and derivatives have left London, turning Amsterdam into Europe's biggest share trading centre. Britain and the EU have agreed that asset managers in London can continue to pick stocks for funds in the EU.