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DExEU updates on FS equivalence post-Brexit

The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services.  The documentation notes that temporary equivalence decisions are in place only under EMIR and the CSDR, as these were necessary to address financial stability and market integrity concerns.

Otherwise, the financial services text in the Political Declaration remains unchanged, and the UK is ready to start the assessment process as soon as possible, with a view to reaching decisions by June 2020. The Government wants equivalence for all relevant regimes (around 40), and has also had equivalence discussions with several third countries.  The Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc)(EU Exit) Regulations 2019 will take effect to give Treasury the powers to make these decisions, on the advice of BoE, PRA and FCA and by regulation subject to the negative resolution procedures.

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Emma Radmore