‘No way’ Brexit Britain will secure extra banking rights, France’s Europe minister warns
Brexit: 'No way' UK can have passporting outside EU says Beaune
French Minister Clement Beaune insisted that it would now be impossible for Brexit Britain to benefit from passporting, the right for banks to provide certain services throughout the EU. While speaking to Bloomberg, Mr Beaune insisted passporting was never afforded to nations outside of the bloc. He did note that the UK may be granted equivalence but this would not be guaranteed and would be on an ad-hoc basis.
Asked whether future deals with the EU could give the UK banks additional rights, Mr Beaune said: “No, passporting is over, that is where I mentioned the consequences of Brexit.
“It is one of the clear consequences of Brexit, so no passporting anymore.
“There is no way there can be passporting when you are out of the EU, that is not possible.”
Mr Beaune noted that the EU could come to a unilateral decision to give the UK some access to the EU markets.
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He said: “What is possible after a unilateral decision from the EU, to be decided by us 27, is to give equivalence – possible access to our financial markets on an ad-hoc basis.
“This will mean looking at the segment of the market you wish to give access to, the EU then decides itself and it will also have the power to revoke this authorisation of access.
“It is a very different world we were living in before December 31.
“It is very clear that passporting is over, there is no parallel negotiation in the financial services, the deal is done.
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“There is a unilateral framework of equivalence in the hands of the EU and now we will be looking at the financial regulations of the UK market.
“This is to see if they are protected enough, regulated enough to give them ad-hoc access or not to our markets.”
Regarding the UK being granted equivalence, Aquis CEO Alasdair Haynes added the UK should not expect to be granted equivalence any time soon.
While speaking to Bloomberg last week, he noted that 18 months later, after a spat with the European Commission, Switzerland still has not been granted equivalence.
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He said: “We saw what happened to equivalence in Switzerland and you can see 18 months ago, Switzerland has still not been granted equivalence.
“It is really important to offer investors a single platform to be able to trade on a Pan-European environment and that is exactly what we are doing.
“Unfortunately it means that we must operate in two offices with the ability to trade any European share, UK or EU 27 shares in either of the markets that we operate.
“The problem that we have got with what has happened here with Brexit is that by the UK losing its passport and a share trade obligation in Europe, it means the EU investors have to trade Europe and UK investors for European shares will either have to go to Europe or trade in London.”
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