Actions to take ahead of January 31st
SUMMARY: No changes expected during transition period. Check out BCC’s Business Brexit Checklist for information on possible longer-term changes.
During the transition period, financial services firms in the UK will largely be able to operate as usual. However, the EU and UK will be carrying out equivalence assessments, endeavouring to conclude these assessments before the end of June 2020. Overall, there have been no material changes to arrangements for financial services compared to the previously agreed Withdrawal Agreement (WA) and Political Declaration (PD).
Post-transition, EU market access for UK firms in the financial services sector will be more limited than under current arrangements as per the UK’s new status as a third country. Market access will be based on ‘equivalence’, which means recognising each other’s regulations and can be withdrawn with 30 days’ notice. Currently, equivalence does not some cover basic business banking products and services such as bank lending. It remains unclear whether this will impact UK firms’ access to finance or other financial products and services. The PD does keep open the prospect of improved arrangements but offers little detail on this. Taken together, there has been no material changes to arrangements for financial services compared to the previously agreed WA and PD.