Since the UK voted to leave the EU on 23 June 2016, there has been much speculation about the form of the future access arrangements between the UK and the EU for financial institutions. In a scenario where no new deal is done, an equivalence framework would come into play, which has been established for institutions that are in the investment business, reinsurance, fund management and market infrastructure sectors. Firms established outside the EU can have access to European investors and markets. Equivalence regimes also assist for prospectuses, accounting standards and capital rules. Many UK institutions may find they are able to continue to access EU markets under the EU equivalence framework.
In this client note, we consider the position of UK institutions that wish to do cross-border business under equivalence regimes established by proposed and recently published European legislation, if the UK were to exit the EU fully.
View full memo, Brexit and Equivalence: Review of the Financial Services Framework Across All Sectors