Thread by @BrexitBanksy

These talks should be about trade, but it’s not really about trade in any traditional sense.
Allow me a brief thread to explain: 1/
#Brexit

For nearly 4 years since the Brexit referendum, the EU has been in a Contingency Planning process, with over 100 “Brexit preparedness notices” published since May 2017, 2/
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Providing basic contingency outlines, they have been refining these documents for the last three years. All while meeting with a series of inexperienced revolving door representatives and a constant supply of moving mitigation concerns. 3/
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These “negotiations” have all been laid bare by David Frost’ bombshell admission from the Brexit webcast on May 27th. with Michael Gove. It’s the 2nd. most stunning admission from the government in 4 years; and seems to have been mostly overlooked. 4/
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Speaking about financial services, Frost states, “EU equivalence decision should, technically, be a formality. But UK is "completely in the EU's hands" on this.” 5/

https://twitter.com/DomWalsh13/status/1265646581971398663

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He even says it twice, here at 6:10 and again at 1:39:50 6/

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Whatever form of discussions existed prior, they came to an end on Dec.18th, where after 3-1/2 years into the process, Boris made it clear they weren’t going to recognize the jurisdiction of the E.C.J. 7/
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Reuters article here: /8
reuters.com/article/us-bri…

The integrity of the EU and UK banking systems are both built around this foundation of regulatory and legal structures. Full Stop. And by nullifying the resolution authority, the UK put an end to any notion of banking integration, 9/
#BrexitMeansBrexit

The EU cannot allow any additional risk from this process to enter their banking system. There will be no equivalence, exceptions, exclusions, modifications, supplements or rollbacks of these evolved safeguards. This is non-negotiable. 10/
#BrexitMeansBrexit

This, the EU’s response, unchanged from Feb. 2018:
“UK entities providing banking and payment services, as well as e-money issuing, will no longer benefit from the authorization to provide those services and activities in the Union, 11/
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…And will be treated as third- country entities with regard to their possibility to establish branches or agents in the Member States.” 12/

“(authorization)…includes compliance with regard to their program of operations and structural organization and the requirement that the effective exercise of supervisory functions is not prevented by difficulties involved, 13/

…In the enforcement of the laws, regulations or administrative provisions of the third country.” 14/

“Payment institutions authorized by United Kingdom competent authorities, as of the withdrawal date, will not be allowed to provide payment services in the territory of the Union, 15/
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…cross-border or through the use of branches located in the Member States.” 16/

“UK entities providing banking and payment services, as well as e-money issuing, will no longer benefit from the authorization to provide those services and activities in the Union, 17/

…and will be treated as third- country entities with regard to their possibility to establish branches or agents in the Member States.” 18/
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“This means that those entities will no longer be allowed to provide services in the EU on the basis of their current authorizations.” /19 ec.europa.eu/info/sites/inf…
#BrexitMeansBrexit

Also to mention the rapidly evolving and increasingly shoring up of safeguards the EU have enacted in the last two years, strengthening their regulations, when the UK was not at the table; 20/
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mostly addressing money laundering. This memo makes it clear for the UK, in a greatly accelerated way, there is no going back… 21/
ec.europa.eu/commission/pre…
#BrexitMeansBrexit

And this memo, closes the door behind them: 22/
europarl.europa.eu/RegData/etudes…
#BrexitMeansBrexit

Since December, for the EU, this is the key component in the Brexit process, as it creates a trickle down of “No Deal” impacts, directly and indirectly, which has a profound effect on a vast majority of contingency plans, 23/
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…as outlined here: /24
ec.europa.eu/info/brexit/br…

See also: 25/
Copyrights: ec.europa.eu/info/sites/inf…
Intellectual Property/Trademarks: ec.europa.eu/info/sites/inf…

Definitions of Economic Operators: 26/
ec.europa.eu/info/sites/inf…

Intellectual Property Rights:
ec.europa.eu/info/sites/inf…
This list goes on, maybe LSE can clarify… 27/
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Trust is the foundation of the banking system, and the UK without an independent regulatory, supervisory and enforcement regime in place, is in effect sending their banks back 47 years, 28/
#BrexitMeansBrexit

And not just with the EU but the rest of the world, leaving zero chance the UK can maintain, even the appearance of, integrity of their banking system through December and beyond. 29/
#BrexitMeansBrexit

This is the subject which neither side could publicly discuss from the April negotiations, and the final unavoidable Brexit brick wall; the “He who must not be named” elephant in the room. 30/
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After 4 years, H.M.G. has created slogans and made a lot of noise, but simply haven’t done the work. And no amount of wiggle room, or attempted back door negotiations will change this… 31/
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Here, Sunak makes it clear that nothing substantive has been done: 32/
assets.publishing.service.gov.uk/government/upl…

And the #1 most stunning admission?
Steve Barclay’s letter to Barnier from September 2019, a full 38 months into the process (and written during a threat of a “no deal Brexit” within 30 days). 33/
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Barclay here, seeming to lack any awareness the UK has transformed itself from partner to competitor, all while tearing down 47 years of evolved and intertwined legal, regulatory, legislative, 34/
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financial, judicial, economic and logistical infrastructure and having done basically nothing to replace it. A shortage of customs agents is just a tip of the iceberg. 35/
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“…there are many areas where we need either to improve our mutual readiness or put in place practical mitigations that work for us both.” 36/

“…for example, how we maintain the flow of goods and passengers at points of entry/exit, or the exchange of data”. So, basically everything, with 4 weeks to plan. This was 8 months ago, but nothing has changed. 37/
#BrexitMeansBrexit

Memo here; 38/
assets.publishing.service.gov.uk/government/upl…

Barnier’s reply is sterling:
“As regards ‘no-deaľ preparations, the EU has already finalized its work, as set out in the
European Commission’s six “preparedness Communications” adopted between July 2018
and September 2019, 39/
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“…as well as in the 100 “Brexit Preparedness Notices” published since May 2017. We will not enter into any negotiations with the United Kingdom on these matters”. 40/
#BrexitMeansBrexit

webcache.googleusercontent.com/search?q=cache… (link now dead) 41/