Originally Posted by Bread
Your agreeing with me
I already said about equivalence - its the EU refusing to accept equivalence in UK finance as a NON-EU member - read your own link.
Guess what happens when the EU refuses to recognise London and its regulations on finance ?
Go and learn something Solasch, go on surprise us
It's a two way street. Once granted, both sides still have the right to withdraw their equivalence finding at any time, an issue causing consternation in the UK industry. As it stands, the EU can withdraw recognition with as little as 30 days’ notice; that could upend the business model of the London Stock Exchange, which needs to offer EU clients three months’ warning of contract termination.
As stated correctly in the DE article, the EU begins a comprehensive overhaul of its financial laws.
Major investment banks want to be able to reach European clients while keeping investment decisions close to the large and liquid capital markets in London. That is done not through equivalence procedures, but via the permission to delegate functions outside the EU’s jurisdiction.
The European Commission failed in a previous attempt to impose more EU control over those delegation arrangements, in a review of EU financial watchdogs’ powers. But they are not immune from change: France still regards them as a suspect loophole.
There is now certainty that, in a bank-capital overhaul due this autumn, the commission may want to address a perceived shortcoming. Foreign banks that open branches in an EU member state are subject to national, rather than EU rules — meaning the likes of Ireland or Luxembourg could seek to attract London-based institutions and their business by undercutting.