Theresa May, speaking at Mansion House, set out her vision for the future economic partnership between the UK and the EU. In relation to financial services, she explained why existing models will not work. For example, the Norway model would keep the UK in the single market but would mean having to implement new EU legislation automatically and in its entirety, and would also mean continued free movement. The Canada or WTO models would mean a significant reduction in mutual market access.
She noted the Commission has suggested the UK’s only option is an off-the-shelf model while acknowledging that in some areas the current set of third country agreements would not be appropriate.
She foreshadowed Philip Hammond’s explanation of how financial services can and should be part of a “deep and comprehensive partnership”. She said the UK would not be seeking passporting as it understands that to be intrinsic to the single market, and also that it would entail compliance with the single rule book. The goal therefore is to establish the ability to access each others’ markets based on maintaining the same regulatory outcomes, with an ability to address any areas where this does not happen. She called for a collaborative, objective framework that is reciprocal, mutually agreed and permanent.