Brexit Inquiry Launched into Future of UK’s Financial Services
The Brexit story is never-ending, and with the deadline only months away, the financial market is anxious to know its future. Today, the United Kingdom’s Treasury Committee launched a new inquiry to examine just that – what is the future of the region’s financial services once Britain leaves the European Union?
Specifically, the Committee will examine what the British Government’s priorities should be in regards to financial services when it negotiates the UK’s future trading relationship with the bloc and third countries. The Committee is now taking written submissions from market participants.
With the Brexit deadline scheduled for March 29, 2019, we’re just over two months out from when Britain will exit the EU, with or without a deal. Already Brexit has had an impact in the UK, with many firms relocating their operations from London the EU.
According to the Chair of the Treasury Committee, the inquiry will aim to determine what’s in Britains best interests in the long-term. That may involve the UK aligning itself closely with EU financial rules or instead, forgo financial services trade with the EU and instead seek trade agreements with third countries.
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“The UK may converge, seek equivalence, or diverge from the EU. As part of our new inquiry, the Treasury Committee will examine the risks and rewards of each of these choices. We’ll also explore the opportunities outside Brexit, such as FinTech, on which we should be capitalising,” said Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee.
“After we’ve taken evidence from industry, regulators, ministers and officials, we’ll make a series of recommendations to the Government and regulators about what it should prioritise in negotiations with the EU and the rest of the world,” she continued.”
Theresa May’s Brexit deal is rejected – what now?
Tensions surrounding Brexit have been rising. Earlier this month, on the 15th of January, Prime Minister Theresa May’s Brexit deal was overwhelmingly rejected by UK Parliament. Although she managed to cling to power by the skin of her teeth, she is now under pressure to come up with an alternative Brexit deal that will be supported by members of parliament, however, the clock is well and truly ticking.
“London is the world’s premier financial centre, and many of us want to keep it that way. Brexit will have a significant and long-lasting impact on the financial services sector, including the insurance, retail banking and asset management sectors, in the UK, the EU, and potentially the rest of the world,” Nicky Morgan added.
So what will be the fate of the UK after Brexit? It seems that only time will tell.