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The advice came from Lord Moylan, a Conservative member of the House of Lords. Following Brexit, Brussels refused to give UK based financial firms equivalence-based EU market access.
This was despite the UK and EU starting with near-identical financial regulations, as Britain carried over laws from its time within the bloc.
Lord Moylan shared a Daily Telegraph comment piece by Barnabas Reynolds, global head of the Financial Services Industry Group, who urged Britain to abandon hopes of EU equivalence and build its own regulations.
The peer commented: “A very wise piece.
“We need to stop fretting about the fact that the EU is erecting unnecessary barriers to trade and use it as an opportunity to reframe our regulations to suit us.
“Equivalence is dead – the UK has to lose EU shackles”
Brussels refused to give the UK based financial firms equivalence based access
“Equivalence is dead – the UK has to lose EU shackles.”
Britain voted to leave the EU in June 2016 but, following a number of delays, didn’t finally depart until January 2020.
Under the end of December, the UK remained closely tied to the EU during the Brexit transition period.
This saw Britain remain a member of the European single market and continue to pay into the EU budget.
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“The EU is erecting unnecessary barriers to trade”
It also continued to implement laws made in Brussels in many areas.
The Brexit transition period was replaced on December 31 by a new trade deal negotiated by Boris Johnson.
This restored Britain’s status as a sovereign trading nation and allowed it to independently join the World Trade Organisation (WTO).
However, the EU is still refusing grand equivalence-based access to the EU financial market.
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Britain voted to leave the EU in June 2016
In January 2021 Amsterdam replaced London as Europe’s leading share trading centre
In his Daily Telegraph article, Mr Reynolds argued this is unlikely to happen, and instead Britain should pursue its own financial regulations.
He wrote: “Up until now the primary concern of UK lawmakers has been about equivalence.
“The fear was that if UK regulations do not track those in the EU, there would be the risk of a lack of “equivalence” determinations.
“But now, this worry has become irrelevant, since the EU is clearly unwilling to grant equivalency to the UK in any areas, despite our literally identical inherited laws.
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“The UK, therefore, needs to reassess its regulatory framework, based upon what is best for the country, the City and the local and international markets that it serves.
“The UK is in a position to shake free of the EU and its instincts of control and codified law-making.”
In January 2021, after the new trade deal took effect, Amsterdam replaced London as Europe’s leading share trading centre.
However, Mr Reynolds argued new regulations could encourage EU based firms to setup UK operations.
Britain formally left the EU in January 2020
He advised: “The UK can make it easy for EU customers to establish small presences in the UK in order to benefit from global financial services and products under UK law and regulation, and outside the EU’s jurisdiction.
“A report in January indicated that over 1,000 EU firms are already doing this.
“Many more could be encouraged to do so.”