Britain and EU strike financial services cooperation pact
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Wednesday
February 08, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
WEDNESDAY, FEBRUARY 08, 2023
Britain and EU strike financial services cooperation pact

World+Biz

Reuters
28 March, 2021, 09:25 am
Last modified: 28 March, 2021, 09:29 am

Related News

  • European Union ambassador visits LafargeHolcim's Surma Plant
  • Question mark remains about EVM use in national polls: CEC
  • European Union holds talks with EC over elections
  • How autonomous is the European Union?
  • PM Rishi Sunak sets out priorities for Britain, responds to critics

Britain and EU strike financial services cooperation pact

Britain’s finance ministry said the two sides have agreed terms on a “Memorandum of Understanding” that will set the conditions for how regulators from the EU and Britain share information

Reuters
28 March, 2021, 09:25 am
Last modified: 28 March, 2021, 09:29 am
Where next? Photographer: Jason Alden/Bloomberg
Where next? Photographer: Jason Alden/Bloomberg

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's finance ministry said the two sides have agreed terms on a "Memorandum of Understanding" that will set the conditions for how regulators from the EU and Britain share information.

However, Brussels has said the MoU will not automatically lead to Britain's large financial industry being able to sell a wide range of products and services to EU clients again.

Industry experts said while the framework was useful, it was unlikely to rekindle anything like the kind of access banks and brokers had to the EU before Britain left the bloc.

Brexit has already put a dent in Britain's financial industry and a City of London official has described the framework as a "talking shop".

"This is unlikely to offer solid foundations for bulk cross border business," said Simon Morris, a financial services partner at law firm CMS.

In January, more than 6 billion euros in daily share trading left London for Amsterdam, along with swathes of trading in derivatives.

In a further potential blow to Britain's financial services might, Brussels is now considering forcing the clearing of euro swaps, still dominated by the London Stock Exchange's LCH arm in London, to move to the bloc.

Friday's MoU agreement is similar to what the EU already has with the United States for arranging regular, informal and non-binding meetings of financial regulators to discuss new rules and air any disagreements.

So far, the EU has declined to grant any long-term direct access for financial firms from Britain, saying this week that it was in no rush.

"Overall, for investors in UK financial services, a greater degree of cooperation between Europe and the UK can only be seen in a favourable light," said Alan Custis, head of UK equities at Lazard Asset Management.

"But it still feels as though the UK needs to continue to plough its own furrow in case there is a change of heart."

Jonathan Hill, a former EU financial services commissioner, said this week that Britain should not sit around for access, known as equivalence, but focus on making the City more attractive to international investors.

"Achieving a form of equivalence with the EU is essential but it should not detract us from the real challenge: making London and other financial capitals in Europe more competitive relative to the fast growing US and Asian markets," said Daniel Pinto, chief executive of Stanhope Capital.

Britain / UK-EU / UK-EU Deal / UK-EU Relations / European Union (EU) / United Kingdom (UK)

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • RMG turns to India from China to get cheaper man-made yarn
    RMG turns to India from China to get cheaper man-made yarn
  • Country's revenue earnings were Tk40,000cr more in last fiscal: Finance Minister
    Country's revenue earnings were Tk40,000cr more in last fiscal: Finance Minister
  • The world's richest person is trying to head off a succession battle
    The world's richest person is trying to head off a succession battle

MOST VIEWED

  • A Postal Museum employee looks at the new definitive stamps depicting Britain's King Charles, unveiled by the Royal Mail, in London, Britain February 7, 2023. REUTERS/Maja Smiejkowska
    New British stamp with image of King Charles unveiled
  • An aerial view shows damaged and collapsed buildings following an earthquake, in Kahramanmaras, Turkey February 7, 2023. REUTERS/Stringer
    Next day crucial for saving many lives in Turkey, Syria
  • The world's richest person is trying to head off a succession battle
    The world's richest person is trying to head off a succession battle
  • Rescuers search through rubble of collapsed buildings following an earthquake, in the rebel-held town of Sarmada, Syria February 6, 2023 in this still image obtained from a drone footage. WHITE HELMETS /Handout via REUTERS
    Syrians abroad fear political rifts will stop aid reaching quake victims
  • Photo: Reuters
    A tragedy that will also shake up the region's geopolitics
  • Photo: Collected
    Syria newborn pulled alive from quake rubble

Related News

  • European Union ambassador visits LafargeHolcim's Surma Plant
  • Question mark remains about EVM use in national polls: CEC
  • European Union holds talks with EC over elections
  • How autonomous is the European Union?
  • PM Rishi Sunak sets out priorities for Britain, responds to critics

Features

Photo: Reuters

A tragedy that will also shake up the region's geopolitics

12h | Panorama
Nimah designed by Compass Architects- Wooden tiles. Photo: Junaid Hasan Pranto

Trendy flooring designs to upgrade any space

23h | Habitat
Benefits of having high ceilings in your new home

Benefits of having high ceilings in your new home

22h | Habitat
Each Reverse Osmosi plant can produce approximately 8,000 litres of drinking water a day for around 250 families. Photo: Sadiqur Rahman

A drop in the ocean of persistent water crisis

1d | Panorama

More Videos from TBS

30% companies see double-digit growth even in hard times

30% companies see double-digit growth even in hard times

14h | TBS Insight
Challenging time waiting for RMG

Challenging time waiting for RMG

21h | TBS Round Table
"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

21h | TBS Graduates
10 cricketers who have played over 400 T20 matches

10 cricketers who have played over 400 T20 matches

21h | TBS SPORTS

Most Read

1
Photo: Courtesy
Panorama

From 'Made in Bangladesh' to 'Designed in Bangladesh'

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Master plan for futuristic Chattogram city in the making
Districts

Master plan for futuristic Chattogram city in the making

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

6
Photo: Collected
Crime

Prime Distribution MD Mamun arrested in fraud case

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]