The UK Government has published on its website a speech by David Davis, Secretary of State for Exiting the European Union. The speech covers the post-Brexit relationship between the UK and the EU relating to the financial services sector.
Mr Davis notes that the relationship between the UK and the EU must change after Brexit and that relationship should achieve three things:
- it must protect financial stability. Mr Davis states that there would need to be a new process for establishing regulatory requirements for cross-border business between the UK and the EU. This process should be evidence-based, symmetrical and reflect international / global standards. Cooperation arrangements should be reciprocal, reliable and prioritise financial stability;
- it must ensure continued protection for consumers across Europe. Mr Davis notes that the UK has been at the forefront of driving high standards in this area. The UK is committed to promoting regulation that protects consumers from abuse; and
- it must support the open and stable cooperative system that has been developed since 2008 for cross-border financial services. Mr Davis recognises that the UK shares the same goals as the EU in relation to financial services, namely: financial stability, consumer protection and continuation to trade. Mr David notes that the question is how these goals are achieved in the future and that it what the UK will be exploring with its European partners.
Mr Davis explains that the UK Government is seeking to secure a time-limited transitional period which it expects to be 2 years. During this period access to the UK and European markets would continue on current terms, including financial services. This means the UK staying in all the EU regulators and agencies during this period.
Mr Davis also mentions that after Brexit, the UK Government will have the chance to design a new immigration system. In 2018, the Government will introduce an Immigration Bill.
View David Davis speech on financial services after Brexit, 14 November 2017