Britain says to sign cooperation pact with EU in financial services

BRITAIN said on Tuesday (Jun 27) it will sign a cooperation pact with the European Union (EU) in financial services, the latest sign of a thaw in relations since Brexit.

The memorandum of understanding (MoU) on regulatory cooperation was part of Britain’s Brexit deal but put on ice due to clashes with Brussels over trading arrangements in Northern Ireland, which have now been resolved.

UK Finance Minister Jeremy Hunt, in Brussels on Tuesday to meet with European Commission officials, said UK and EU financial markets are deeply interconnected and that building a constructive, voluntary relationship is of mutual benefit to both sides.

“This agreement with our European partners as sovereign equals builds on our arrangements with the US, Japan and Singapore, helping to support the sector’s role as a global financial services hub,” Hunt said in a statement.

The MoU sets up a forum that will meet about twice a year, similar to what the EU already has with the US.

After Britain’s financial sector lost unfettered acces to the bloc due to Brexit, Brussels has made it clear the MoU won’t be a forum for negotiating better access for UK financial services.

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The EU is already approving a law that would require banks in the bloc to shift clearing of euro derivatives from London to centres like Frankfurt. REUTERS