UK finance sector proposes 'ambitious' post-Brexit trade pact

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Europe

The UK's financial sector is seeking an "ambitious" trade pact between Britain and the European Union to try to prevent a costly shift of jobs and business to the continent once the country leaves the bloc, Reuters reported on Tuesday.

Unless Britain negotiates new trading relations with the EU, banks, insurers and fund managers in Britain could be locked out of the bloc's markets when it leaves the EU in March 2019.

The International Regulatory Strategy Group (IRSG) said in a report, to be submitted to the British government in September, that such a trade pact would allow UK firms to operate in the EU without the cost of having a local license.

Brexit Minister David Davis (L) and EU Chief Negotiator in charge of Brexit negotiations Michel Barnier speak during a meeting in Brussels, on July 17, 2017. /AFP Photo

"The proposals in the report are intended to achieve a level of mutual access for EU and UK firms, which is as close as possible to the current levels of access that exist for such firms within the EU framework," the report said.

It admitted negotiating such a pact could be challenging. Other EU capitals have been vying to attract London's financial businesses since the Brexit vote.

Currently, banks authorized in London can "passport" or offer their services to customers across the EU without the need for a license in each country, but this will end when Britain leaves, forcing the country to agree on new trading terms.

Britain and the EU could also create a "Financial Services Forum" to encourage "continuing alignment" by sharing information and participating in the development of new laws and regulations.

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Source(s): AFP ,Reuters