Brexit: UK vows to complete Canada assessments in two weeks
The government has vowed to hand over paperwork to ensure Canada maintains post-Brexit EU access within the next two weeks, after missing the initial deadline.
The UK was supposed to hand over 28 regulatory equivalence assessments by Monday for the EU to assess if it would allow access to Britain’s financial services industry after the Brexit transition period ends next year.
The UK’s financial services industry will only be able to maintain access to EU markets if UK regulations for the sector are granted equivalence status.
Equivalence is unilaterally granted to outside countries by Brussels if financial services regulations are similar to the EU’s.
Downing Street yesterday blamed the EU for missing the deadline as the UK only received the paperwork on 24 May and was much more detailed than expected.
City minister John Glen told a House of Lords committee today that the forms would be handed to the EU within two weeks, while adding that he had no insight into how long it would take for Brussels to provide clarity on the issue.
“We will be able to conclude [the assessments] in the next couple of weeks, but their assessment for us is a matter for them and I can’t tell you exactly when that would be,” he said.
Downing Street has been confident the UK will be able to secure equivalence status as the regulatory regime is not expected to change much post-Brexit.
However, there has been suggestions the EU could withhold equivalence status to draw concessions in other parts of talks.
EU chief negotiator Michel Barnier has said equivalence is not linked to Brexit trade talks in a bid to quash this suggestion.
When asked today if the UK expected the financial services sector to be politicised in this way, Glen did not give a definitive answer.
“The degree of politicisation and the way that is interpreted is a value judgement people will make,” he said.
“My responsibility is to speak clearly for the financial services industry – going forward we want a reasoned and transparent approach for how we operate with our friends and partners on the continent of Europe.”
It comes as the latest round of talks between the UK and EU finished a day early today, with “significant differences” still remaining between the two sides.
A statement from chief UK negotiator David Frost said that he was still committed to coming to a principle agreement for a future trade deal this month.
Negotiations have been at a standstill in several key areas, including over EU access to UK fishing waters and business competition regulation known as the level playing field.
The deadline to ratify a trade deal with the EU is 31 December when the UK’s post-Brexit transition period will end.
Boris Johnson has made clear that the UK will need to make a decision on whether to continue talks or prepare for a no-deal situation before the end of summer.