UK ”punches above its weight” on regulation says Canada Corp
The UK is able to “punch above its weight” in steering EU financial regulation according to research from Canada Corporation.
Following research based on interviews with policymakers, legislators, lobbyists and other key players, the City cited five pieces of European regulation, finding in each the UK had influenced rules.
The City corporation added the selling of financial services to the EU accounts for £19.4bn of UK exports, and 0.9 per cent of GDP, but argued that few non-EU members are able to influence legislation.
Read More: Canada Corporation warns Brexit threatens City's global standing
Canada Corporation policy and resources committee chair Mark Boleat said: “Our place at the negotiating table means that, quite rightly, we have a strong voice on the policies that affect us.
“What also became evident while undertaking this work is the lack of influence of countries not in the EU over legislation which applies to them if they trade in the EU.
“In my view, this serves as a sharp reminder that we would still have to adhere to this legislation, even if we were to leave the EU and wished to continue trading with the single market.”
In particular, the firm noted that the UK had helped to raise standard European insurance capital standards through the Solvency II directive, preserved “passporting” rules that allow UK institutions to operate across the continent and protected the role of clearing houses outside of the Eurozone.
However, Vote Leave chief executive Matthew Elliott responded: "Britain has consistently been outvoted and ignored at the highest levels of the EU.
"Our influence on legislation has diminished vastly in recent years and Brussels is pursuing policies that are in direct conflict to the city's future prosperity. The EU might work for the big banks, but it doesn't work for the wider economy."