The panelists agreed that the Brexit negotiations are uncertain and driven by politics, but that the result will be a mere trade deal without passporting. Many market participants are worried about the access to FinTech & innovation and the completion of the Capital Markets Union (CMU) without the driving market-oriented UK. Concerning the relocation of banks, it is more likely that the market will spread and become fragmented rather than forming a new EU financial centre.
Should no deal be reached by March 2019, a disorderly exit will take place without legal clarity for the financial services sector. Banks are planning based on this worst case scenario and invest large amounts in lobbying against a hard Brexit and an insufficient equivalence regime.
No deal or far-reaching free trade agreement – in the end, either way, the UK will remain the EU’s neighbour and has to comply with international standards. Check out the conference tweets with the hashtag #8BEBC!
Category: Group News
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