Thursday 22 October 2020
UK Financial Services:
“Not clear if they are able to market and sell services inside the EU Single Market from 2021 because of political wranglings over equivalence”
The CEO of compliance consultancy Paul Grainger in an article published by FT Adviser on 22 October 2020 has underlined the concerns and frustration of firms operating inside financial services who are still unclear if they are able to trade inside the Single Market from 2021.
“Continued delay and obfuscation over the exact shape of the future relationship between the EU and the UK has left many of the firm’s working in financial services unclear and unsure as to the regulatory environment in the UK from 2021. Oddly, with months left until the end of the transition period, firms are not clear if they are able to market and sell services inside the Single Market from 2021 because of political wranglings over equivalence.”
“It’s not as if financial services is a cottage industry. It’s a big player across the globe with a key and significant role in the British economy. £132 billion is generated each year according to the ONS by firms providing services ranging from mortgages, insurance, private equity to car loans. The UK today is heavily reliant on financial services and is in many respects the engine that drives the British economy accounting for 6.9% of overall British economic activity. London’s standing as a financial centre, where compliance to regulations is gold-plated, is seriously in jeopardy given the ambiguity around equivalence, and the potential for UK registered financial services providers to be penalised for operating inside the EU from 2021.”
Paul Grainger, CEO of Complyport, goes on to argue that:
“The move towards a no-deal Brexit by the British Government undermines the continuity, stability that many companies have relied upon to plan and manage their businesses. This instead Is likely to be replaced by continued uncertainty over access to the EU Single Market and what the exact shape the future relationship will be with the EU. Particularly concerning for financial services firms in the UK is the prospect that a no deal Brexit will in fact mean more red-tape for firms when we end the transition period. There is likely to be a lot more red tape for trade, for employing foreign workers and also for the day-to-day operations of firms who have been used to seamless access to the EU and the Single Market.”
Notes to Editors:
To arrange an interview with Paul Grainger CEO of Complyport Ltd please email or call John Kaponi
CV of Paul Grainger https://legalexperts-uk.com/img/Public/6d6ef9a1-60f1-4050-97b7-69ce62b4f80b.pdf
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