The European Commission plans to agree to cooperate with the United Kingdom in the area of ​​financial services this month

This content was posted on March 16, 2021 – 10:15 am

Brussels, 16 March (EFE). – The European Commission (EC) hopes to agree before the end of March a Memorandum of Understanding with the United Kingdom to regulate its cooperation in financial services, an area not included in the sealed trade agreement. Between the European Union and its former partner after Brexit.

“We are committed to establishing a framework for cooperation, as agreed between the European Union and the United Kingdom (…) and I am sure (…) that we will stick to the deadline for this month,” said European Commissioner for Financial Services, Mairead MCGuiness, during the teleconference With the Ministers of Economy and Finance of the European Union.

McGuinness indicated that this cooperation “will not restrict” the European Union’s right to act “unilaterally” to regulate the sector or adopt parity decisions, which are necessary for UK-based financial services companies to operate in the region. The society of this third is a country.

The Commissioner stressed that the executive branch of the community would discuss issues related to negotiations of this framework with member states, also on a bilateral basis, and that all issues they deemed “useful” would be taken into account in discussions with London.

“With full participation comes unity as well. I hope we will continue to show a united front towards the UK, leaving no room for any intention to divide ourselves or create room for tyranny,” said McGonis, adding that the European Parliament will also participate in this process.

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The trade agreement signed last December does not include financial services, which are now regulated by a system of equivalents, according to which British companies wishing to operate in the European Union from the United Kingdom will not be able to do so unless Brussels decides that Britain regulation is “equivalent” in its guarantees to society. , vice versa.

In a political declaration attached to the treaty, the 27 countries and London agreed to the agreement before the end of March 2021 on a framework that allows cooperation between the two parties in regulating the sector.

This scheme, which according to Brussels will be analogous to the system between the European Union and the United States, will allow them to discuss matters of parity or stay informed of their own regulatory initiatives, but it will not give them rights in the actions of the other or limit their own.

Brussels has yet to decide whether to grant parity with the UK in 26 of the possible 40 areas, but the commission will not resume its analysis until it agrees on the framework for cooperation.

So far, only two equivalent decisions have been made, particularly for the UK’s central counterparties, as they are related to financial stability.

The United Kingdom, for its part, adopted a series of decisions last November that will allow community businesses to access their markets in 22 regions. EFE

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