Brexit Deal Said to Confirm U.K. Banks Losing Easy EU Access
- ‘Equivalence’ puts leverage in hands of Brussels regulators
- Deal’s conditions are precarious, partial, City official says
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The U.K. finance industry’s access to the European Union was downgraded, as expected, in the draft Brexit deal approved Wednesday by the British cabinet, according to a person familiar with the matter.
Under the terms of the draft deal, Brussels officials will have the authority to block access to British financial institutions if they determine there’s not a level regulatory playing field, the person said. The arrangement, known as "equivalence," is how the EU allows non-EU companies to sell services in the bloc; equivalence can also be revoked on short notice.