On 11 April 2018, the Confederation of British Industry (CBI) published a report, a Smooth operation, which seeks to inform the Brexit negotiations by outlining where British businesses want to stay close to EU rules and where they want divergence. The report is based on interviews with different UK businesses, from architects to zoos, outlining the regulatory needs of 23 industry and service sectors, of which 18 prefer convergence or alignment for the majority of regulation that matters.

Pages 64 to 67 of the report cover financial services. In summary it states:

  • Mutual Recognition: An agreement covering a range of financial services (from banking, insurance, asset management to market infrastructure and related services) based on mutual recognition of EU and UK rules is needed for businesses and consumers on both sides. Mutual recognition of UK and EU payments regulation will also be necessary to ensure consumers continue to benefit from fast and efficient cross-border payments; and
  • Additionally, if the UK is to continue a form of regulatory alignment with the EU, it will be necessary to negotiate a way of cooperating on regulations and supervision over time. A strong role for the UK at the international level is also important to retain the UK’s influence on both global and EU rules.