Nov 07, 2018
Partner Barnabas Reynolds, head of Shearman & Sterling’s global Financial Institutions Advisory & Financial Regulatory practice, was interviewed by Ian King Live on Sky News about a U.K.-EU Brexit deal on financial services, based on Barney's recommended solution, now adopted by both parties, for achieving reliable mutual recognition founded on enhanced equivalence.
In the interview Barney discusses what enhanced equivalence means and how an enhanced equivalence relationship between the U.K. and EU would work.
Barney first proposed enhanced equivalence in detail in "A Template for Enhanced Equivalence: Creating a Lasting Relationship in Financial Services Between the EU and the UK", Politeia, July 2017 . The Template forms the basis of the U.K. Government's July 2018 (Chequers) enhanced equivalence model proposed for post-Brexit U.K.-EU trade in financial services. It also forms the basis for the leaked version of the agreed high-level financial services arrangements between the U.K. and the EU after Brexit. In October this year, Barney authored "Free Trade in UK-EU Financial Services – How Best to Structure a Brexit Free Trade Deal", Politeia, in which he set out how enhanced equivalence could be achieved entirely through a (detailed draft) financial services chapter of a Free Trade Deal, which appears to be the form in which his ideas are to be implemented.