Banks Warn Britain and EU of Chaos: Express

The transition period for Britain’s relationship with the European Union and membership privileges end in December, and Brexit talks are at a stalemate. “Any future direct EU access after the transition period is over will be decided by whether Brussels feels the UK regulation is ‘equivalent’ to the standards set in the trade bloc,” reports Manon Dark for the Daily Express. The Association for Financial Markets in Europe warns of potential financial chaos if the two sides do not reach a deal by the deadline. “AFME also said that a two-way access in stock and derivatives trading was needed to minimise disruption,” Dark notes. “The group has asked for a formal framework for EU and UK regulators to ameliorate differences that could harm access.” Brexit talks are planned throughout the summer. The British government suggests that extension of the transition period is not required. – YaleGlobal

Banks Warn Britain and EU of Chaos: Express

Amid the impacts of the Covid-19 pandemic, bank lobby group warns the UK and EU to make progress on EU financial market access and avoid Brexit chaos
Manon Dark
Monday, July 6, 2020

Banking Sector •	The UK with more than 300 banks is Europe’s largest and the fourth-largest in the world •	About 2.2 million people work in UK financial and related services. •	The Big Four Banks – HSBC, Barclays, Royal Bank of Scotland and Lloyds Banking Group – manage over 75 percent of UK current
(Source: Mordor Intelligence)

Read the article from the Express about the uncertainty for banks from stalled Brexit talks.

Read the report from AFME is calling on the EU and UK to: “ensure that equivalence determinations are in place well in advance of the end of the transition period; establish arrangements for close supervisory cooperation to ensure effective and efficient oversight of firms and cross-border activities; and establish a formalised framework for regulatory cooperation to build trust and ensure as much transparency and certainty as possible over the processes for the assessment and withdrawal of equivalence."

Michael Cole-Fontayn, AFME Chairman said: “We hope that the foundations can be laid for a cooperative and stable long-term relationship, minimising fragmentation, including formal arrangements for supervisory and regulatory cooperation to build trust and ensure as much transparency and certainty as possible over equivalence processes.”

World's Top 1000 Banks Bank number	Return on capital US 	169	15% China 	136	12% Japan	87	4% UK	25	8% Germany	25	2% Other	558
Chaos could encourage banks to relocate (Source: The Banker)

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