Report: May Strikes Financial Services Deal with EU by Agreeing ‘Equivalence’ After Brexit

Brexit City of London Banking Financial Services
AFP/Daniel SORABJI
Liam Deacon

Theresa May has reportedly struck a deal giving the UK’s financial services firms continued access to European Union (EU) markets after Brexit, by agreeing to mirror the bloc’s regulations.

The UK is the world’s largest financial services exporter and after reports of the deal on the sector, appearing in The Times, the pound rose by more than one per cent against the dollar.

The City of London’s access to European markets after the divorce next year would be based on the EU’s so-called equivalence system.

It is also claimed that an initial deal on the exchange of data had also been agreed, and the deal is expected to be completed and confirmed in just three weeks’ time.

However, a government source told the BBC the report in The Times was “a rather rose-tinted interpretation of where we have got to,” adding: “People shouldn’t get ahead of themselves.”

The news comes after it emerged Wednesday that Brexit secretary Dominic Raab believes a Brexit deal is likely to be signed in the next three weeks – by November 21.

“The end is now firmly in sight and, while obstacles remain, it cannot be beyond us to navigate them,” he wrote in a letter to the Commons Brexit committee.

“We have resolved most of the issues and we are building up together what the future relationship should look like and making real progress.”

However, the Brexit department walked the claim back Wednesday night, saying in a statement: “There is no set date for the (EU) negotiations to conclude.”

Meanwhile, The Times also says Mrs May has met with more than 130 business leaders and executives in the City of London, urging them to lobby and push MPs to back the Government’s Brexit deal, whatever it may look like.

She also reportedly briefed her Cabinet on the progress made on the future relationship during talks last week.

One source claimed the deal was beginning to look “more like a Canada-style deal than Chequers,” although key aspects such as British access to the Single Market for goods have still not been agreed.

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