City lobby group demands 'bespoke' Brexit deal based on regulatory cooperation

TheCityUK has set out 17 priorities for the financial and related professional services industry that need to be addressed in the forthcoming Brexit negotiations between London and Brussels.

In a paper issued on Thursday (12 January), the lobby group called for a 'bespoke' Brexit deal based on regulatory cooperation and mutual recognition.

The industry body also said it is no longer insistent on EU passporting rights that ensure continued access to the single market. This is in contrast to its previous demand, where it had said that it was essential to maintain full passporting rights as it would allow companies in the UK to sell services and products in Europe.

It wants the Brexit deal to be based on a framework that would be in the economic interests of both the UK and the EU, and allow UK financial firms to continue to serve European customers if they complied with rules the EU would set out.

Referring to the derivatives sector, it said that for all products, a mutual recognition arrangement was needed for "recognising and enforcing judgments from UK jurisdictions in the EU and vice versa".

Miles Celic, CEO at TheCityUK said, "The industry has been working closely with the Government to help identify key priorities for the negotiations.

"We have been clear to stress these should include interim arrangements, access to global talent and expertise, and a bespoke deal based on mutual recognition and regulatory cooperation. Ultimately, the best Brexit deal will be one that reduces uncertainty and enables businesses to continue to best serve customers and clients."

The industry body further said that access to markets would require "continued close cooperation between the Financial Conduct Authority Prudential, Regulation Authority, the European Supervisory Authorities and Member States' competent authorities, as well as the Bank of England and the European Central Bank".

Other key priorities that TheCityUK noted in the paper include, the need for clear and upfront transitional arrangements; access to domestic, EU and global talent; allowing marketing with EU-based clients even where UK-based businesses do not have an EU authorised branch or subsidiary and mutual recognition on product standards.