Peers in plea over dialogue with EU

Peers have written to Chancellor Rishi Sunak urging the UK Government to establish “structured dialogue” between the UK and EU to support cross-border financial services after Brexit.

A House of Lords EU financial affairs sub-committee review heard evidence from financial regulators, insurers, bankers, asset managers, academics, representatives from industry bodies and Treasury Economic Secretary John Glen.

Evidence “strongly pointed” to the need to stabilise the future UK-EU relationship in financial services, while also making the most of new opportunities after Brexit.

In its letter to the chancellor, the committee raised the following key points:

“Atsomepoint negotiating a relationshipwith EUisneeded”

• Structured dialogue between the UK and EU will be essential for future co-operation in financial services and managing equivalence.

• The UK should avoid becoming a “rule taker” and look for targeted adjustments to improve the regulatory regime.

• UK financial regulators should be granted greater powers after Brexit, subject to appropriate parliamentary scrutiny.

Committee chairman Lord Sharkey said: “While the government is quite rightly focusing on the coronavirus pandemic, at some point it will need to return to considering the future of the UK’s financial services sector and negotiating its relationship with the EU.

“When it does, it should pay particular attention to how it will work with the EU to support cross-border financial services and manage any future divergence.”