The City of London may be better off staying out of the EU's financial services market as it would have to sacrifice autonomy over setting rules to win full access, a report by Britain's upper house of parliament said on Wednesday.
The European Union has yet to grant Britain direct financial market access after it left the bloc on Dec. 31 and large amounts of trading in stocks and derivatives denominated in euros has shifted to Amsterdam from London.Brussels will consider whether to grant full access, known as equivalence, once it has agreed a memorandum of understanding with Britain on a new forum for cooperating on financial rules, an agreement that is due by the end of March.
Britain has already published proposed changes to regulations covering company flotations and financial technology firms, and will also amend solvency rules for insurers. Financial firms would like the new forum, which will be for regular, informal talks between regulators, to also include formal consultations with the industry."The government should consult regularly to ensure it is representing the UK financial services sector's interests and priorities in the dialogue," the House of Lords report said.
sour grapes...Aesop's Fables