BREAKING: Brexit and the City of London: What Changes and When
LONDON (Reuters) - Britain, which left the European Union (E.U.) in January, loses full access to the bloc under transition arrangements that end at 2300 GMT on Dec 31.
The E.U. is Britain’s biggest financial services customer, worth about 30 billion pounds a year.
The relationship has helped keep London one of the world’s biggest financial centres and a contributor to British tax revenues.
Britain and the E.U. hope to reach a free trade agreement this week but financial services are being dealt with separately.
From the start of 2021, blanket access for British financial firms to the E.U. ends and will be replaced by an E.U. system known as equivalence.
This refers to an E.U. 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.
British banks are already warning customers in the bloc their accounts will be closed.
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