The EU and UK have announced that a Brexit Trade Deal has been agreed after negotiations continued through the night.
Paul Grainger, CEO of Complyport, said the following in light of the announcement:
“A sigh of relief, that we have reached an agreement. The news that there has been agreement on the type of trading relationship we will have with our geographical neighbours is greatly welcomed. However, as has been clearly stated by the European Commission document on the new UK-EU trade deal, the issue of equivalence for financial services, among other issues, is “and will remain a unilateral decision of the EU and are not subject to negotiation.”
“Despite the Prime Minister’s optimism that there is “good language about equivalence for financial services” there will be many who work within the financial services industry who will be keen to look at the detail. The devil is in the detail”.
“We must not forget that this agreement will mean businesses will now face barriers in the form of customs checks and rules of origin, even with tariff and quota-free access to the EU. This agreement means that there will not be mutual recognition of conformity assessments, meaning firms will have to pay the regulatory cost of certification twice if they wish to sell their products in both the U.K. and the bloc. Financial Services and the services sector in the UK which accounts for 80% of the U.K. economy are not included in this agreement. Crucially for our clients, Financial Services are still waiting for the separate equivalence decision.”
How Complyport can support you with Brexit now and from January onwards
Complyport’s Financial Services Brexit Report 2020 is now available for download.
We are continuously up to date on all the latest government and FCA’s discussions as our staff sit on numerous Brexit working groups and committees. Our CEO, Paul Grainger, chairs the APCC’s EU Withdrawal (Brexit) Working Group and is regularly in the press and on media panels.
Currently we are assisting regulated firms throughout the UK and the EU to future proof themselves as best as possible against the uncertainty of Brexit.
Contact us today to book a free Brexit consultation during which we can assess Brexit’s impact on your business. We can discuss the immediate impact, business risks raised by Brexit, the effect of no deal, regulatory reporting post Brexit and more.