LONDON (Reuters) – Britain leaves the European Union at 2300 GMT on Friday but has yet to negotiate a deal on future trading relations with the bloc.
FILE PHOTO: The financial district can be seen as people walk along Millennium Bridge in London, Britain, January 19, 2020. REUTERS/Henry Nicholls/File Photo
The EU is Britain’s biggest market for financial services, worth about 26 billion pounds a year in exports. That level of business has helped to keep London as one of the world’s biggest financial centres and made the financial industry Britain’s most important tax-raising sector.
The following are details on what will happen to Britain’s financial sector after Brexit.
WHAT CHANGES ON JAN 31?
Effectively, nothing. There will be a business-as-usual transition period until the end of 2020, meaning that investors in Britain and the EU will see no change in services on Monday, Feb. 3.
All EU financial rules will still be applicable in Britain until the end of December.
Banks, asset managers and insurers in Britain will continue to have full, unfettered access to investors in the bloc during that period.
NEXT STOP, JUNE
Britain and the EU are set to begin talks on a trade deal that would take effect from January 2021.
Access to each other’s financial services markets will come under the so-called equivalence regime in which each side decides if the other’s rules for financial stability and investor protection are sufficiently aligned with its own to grant access.
The EU and UK have agreed to complete the technical assessments for equivalence by the end of June.
UK regulators have said that Britain is the most equivalent country in the world,