Thread by @ArribaSellier

Sadly for the @cityoflondon, the future EU-UK Cooperation and Trade Agreement's provisions on financial services fares very poorly, even in comparison to the CETA or the Japan-EU FTA. [short thread /1]

https://twitter.com/MichelBarnier/status/1342763875847045122?s=20

Requirements are very limited. Both parties abide by international standards. Financial services seem concerned by national treatment and MFN clauses, but no more. Access to public clearing and settlement. A classic prudential carve-out... and that's it! /2

Nothing on equivalence, not even commitments for transparency and swiftness. Regulatory transparency is also out. Furthermore, it seems that the future treaty is dramatically silent on regulatory cooperation, which is quite stunning for such interdependent and close partners. /3

The Treaty provide general, transversal requirements for regulatory transparency and cooperation but nothing specific on financial services (there is not even a committee on financial services) and close to what is provided in other FTAs on these matters /4

By contrast, recent FTAs signed by the EU like the CETA and the EU-Japan PTA include specific requirements on regulatory transparency and cooperation. The EU-Japan PTA even include commitments on mutual compatibility of regulatory and supervisory frameworks, and equivalence! /5

The United Kingdom will also be in a worse position than some countries that are not (yet) bound by Free Trade Agreements to the EU, like the United States, as the European Commission has thus far granted only a couple of equivalence decisions to UK financial services. /6

Brexit matters and it is going to be a (very) hard #Brexit for financial services. /7 and final

#FinReg #Finance #UK #BrexitDeal

PS: It is a stark contrast with Chancellor @RishiSunak’s assertion that “this deal also provides reassurance because there’s a stable regulatory co-operative framework mentioned in the deal” (sic!) cc @ChrisGiles_ @jimbrunsden
on.ft.com/34LS3H2