German management companies demanded “unfettered access” to financial services from London after the British exit from the EU to push British calls for the preservation of open markets, when Britain leaves the bloc.
The European Union was adamant that any future free trade agreement between the UK and the EU are unable to include financial services and warns that a British exit from the EU will strip the sector of its “right certification” block.
Instead, in Brussels, said that access would be governed by a regulatory “equivalence”, the decision of the European Commission. Such decisions can be revoked unilaterally, without appeal, and only for 30 days, which robs the business of certainty.
Last week, Philip Hammond, the Chancellor, repeated his call for a win-win deal on financial services. The British government has agreed with the loss of your certification, which will come into force when the UK leaves the transitional period the UK out of the EU at the end of 2021.
Representatives of the city of London has called for the deal, which simulates the status quo as possible. They argue that any actions that harm London, unit pre-eminant financial centre, will see the business relocate to new York, not in Frankfurt or Paris. The market can also be fragmented, bumping up costs.
There are only nine months to 29 March 2019 deadline, quarter, and month when Britain will become the EU “third country” in the eyes of Brussels regulators, controllers and managers of the company Ares stepping up your training.
UK asset managers controlling at least $ 1.7 trillion in the interests of European customers, according to the financial times.
The Ft reported that the German investment funds Association policy (BVI) document calls for “proper and unhindered” access to key London investment services.
“The importance of such access will significantly increase in the event of a British exit from the EU,” said the BVI in the policy document, which required access to the London clearing and trading facilities. Nowhere in the EU can not provide the same level of market infrastructure at the present time.
What is the clearing of Euro and why it is important for the city?
Meanwhile, Brussels reform of financial regulations in the interests of third countries on concerns that less stringent British regime could undermine the bloc and pose a risk to its financial stability.
The EU also plans to revise its scope of equivalence to make it better able to cope with the emergence of a large financial sector so close to their markets.
The BVI said the third-country regime for investment firms after the British exit from the EU should be “thoroughly revised” and that there was no restrictions on institutional investors to obtain advice from third countries financial companies.
In may, the EU pointed to softening her tone for KLO. The British clearing house should not be forced to move to the European Union after the UK’s exit from the EU, Danuta hübner, senior MEP, said.
The EU is considering changes in its rules for clearing houses, most of which are in London, which could lead to the biggest forced to establish the headquarters of the EU.
More than 90pc of the most important transactions in euros, shot by British clearing organization that, after the British exit from the EU, would be outside the EU.
Immediately after the vote the UK out of the EU in 2016, françois Hollande, President of France, said that London should no longer be allowed to net assets of the Euro.
In February, the Telegraph reported that the governments of some EU countries might be prepared to easily go to the London bankers in exchange for the continuation of freedom of movement for its employees.
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