LONDON (Reuters) – Britain will not consider offering additional access to financial markets to EU companies from January until the bloc clarifies its own approach, a senior official said on Thursday of the Ministry of Finance.
Britain left the EU in January and full access to its single market ends on December 31, leaving Britain’s £ 130bn financial sector largely cut off from one of its biggest customers unless Brussels will not allow him to access it from next January.
Katharine Braddick, head of financial services at the UK Department of Finance, said it was “regrettable” that the EU was not ready to consider UK access to a range of financial activities, particularly financial activities. cross-border investment services.
So far, the EU has only granted 18 months access to UK derivatives clearinghouses, prompting Britain on Monday to unilaterally grant access to EU financial firms from January for certain activities.
Brussels said on Monday it was up to Britain to explain how it could deviate from EU rules after January before the EU could complete its assessments on UK access, being given that access depends on UK rules which remain ‘equivalent’ to regulation in the bloc.
Braddick fired back on Thursday, saying Britain will not grant more access to EU financial firms until it gets more clarity from Brussels on its own intentions for Britain.
“Some in the industry would have liked the UK to go further,” Braddick said.
“There are decisions that it doesn’t make sense to make if they’re not reciprocal,” Braddick told a City & Financial conference online.
Britain expressed its concerns to Brussels, indicating that it wanted to adapt certain rules inherited from the bloc, such as capital rules for insurers.
A review of UK post-Brexit financial rules is underway.
“This will allow us to think about how we may need to change the way we make and shape our future rules,” UK Financial Services Minister John Glen said at the conference.
Maintaining leading standards and being competitive as a financial center would be key priorities, Glen said.
“We will be guided by what is good for this country,” said Glen.
Reporting by Huw Jones; Edited by Gareth Jones and Hugh Lawson