How will the EU decide on financial services equivalence for Britain?

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EU to Retain Control Over Financial Services Equivalence Decisions for Britain

The European Union will not grant Britain general, global, or permanent equivalence for financial services. Instead, Brussels will maintain control over these decisions, making them on a case-by-case basis through regular assessments of whether British financial regulations align with EU standards. This approach ensures the EU retains its decision-making autonomy throughout the post-Brexit trade negotiations.
Equivalence Decisions Based on Rule Compatibility

The EU's chief negotiator, Michel Barnier, explicitly stated that equivalence will not be a broad or enduring arrangement for Britain. Decisions will be contingent upon a consistent evaluation of the UK's financial rules to determine their compatibility with those of the EU. This process is designed to be a one-way street, with Brussels holding the ultimate authority.
Brussels to Assess UK Financial Regulations

The EU will conduct regular assessments to ascertain if Britain's financial regulations are sufficiently compatible with the bloc's own standards. This ongoing review mechanism is central to how equivalence will be granted, ensuring that any access to the European market is based on a verifiable alignment of regulatory frameworks.
EU Retains Control and Autonomy

Michel Barnier emphasised that the EU will maintain full control over the tools used for assessing equivalence and will preserve its decision-making autonomy. This means that Brussels, not London, will have the final say on whether British financial services firms are granted access to the EU market under equivalence provisions.

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How will the EU decide on financial services equivalence for Britain?

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