Hogan Lovells comments on reports of a potential Brexit deal on financial services

Commenting on media reports today of a potential Brexit deal on financial services, Hogan Lovells partner Rachel Kent said:

"There has been no official confirmation or announcement so we need to treat this with caution. What we are expecting in the next month is agreement on the withdrawal arrangements which will be detailed and legally binding. Attached to that will be the non-legally binding political declaration. This will contain any proposals for the future relationship. We very much hope that this will contain some principles on future arrangements on financial services. This would be very welcome in the City which has been pushing for a deal on access for financial services firms since shortly after the vote in June 2016.

"Such a deal would have clear benefits for EU firms who currently passport into London, including many of the large EU headquartered banks, as well as U.K. firms who provide financial services to EU corporates. Continued access to the widest choice of financial services is in the clear interests of consumers in Europe as well as being much more capital efficient, which also benefits them.

"This should be relatively easy to implement on Day 1 given the alignment of our laws. While we will need a mechanism to determine how new laws are made and adopted going forward and there will be many other details to develop, it is very reassuring to see such an innovative approach from the negotiators."

Rachel Kent is working with the various initiatives of the International Regulatory Strategy Group (IRSG), chaired by Mark Hoban, which represents the UK's financial and related professional services sector in analysing how the UK can continue trading with the EU after leaving the bloc.  The most recent IRSG report can be found here.  

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