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There’s No Such Thing as Free Access, EU to Warn U.K. on Banks

  • European Commission to lay out approach to equivalence regime
  • U.K. banks’ access to EU after Brexit hinges on tough scrutiny
The Bank of England stands illuminated at dawn in the City of London.
Photographer: Jason Alden/Bloomberg
Updated on

The U.K. should expect a “rigorous” assessment of its regulations before financial firms will be allowed to do business in the European Union after Brexit, according to a draft document to be presented by officials in Brussels later this month.

The European Commission, the EU’s executive arm, is set to lay out its most recent approach to the so-called equivalence system, which allows foreign financial firms to do business in the bloc if regulations in their home country are deemed tough enough. Officials have made it clear that this system is all that’s on offer for the City of London after the U.K.’s departure.