The European Union's markets watchdog said it will check how Britain applies the bloc's financial rules during the transition period that follows Brexit on Friday.[LONDON] The European Union's markets watchdog said it will check how Britain applies the bloc's financial rules during the transition period that follows Brexit on Friday.
Britain leaves the bloc at 11pm London time, with a business-as-usual transition period until the end of December when all EU rules still apply. "In the coming 11 months, ESMA will continue monitoring the application of EU law to/in the UK and will closely monitor developments in preparation for the end of the transition period," the European Securities and Markets Authority said in a statement on Friday.
ESMA will advise the European Commission in its assessments by June 30 on whether to grant investment firms and trading platforms in London direct access to EU investors after December under an EU system known as equivalence. Brussels would have to deem that market rules in Britain are aligned enough with regulation in the bloc for access to be granted, and ESMA will be checking for any signs of divergence in rules.