PA’s David Biggin, financial services regulation expert, is quoted in Global Risk Regulator. The article is in response to the UK’s vote to leave the EU and what comes next.
As financial institutions operating in the City of London wonder what kind of access UK-based operations will have to the EU's financial services market after separation, David talks about whether there will be more scrutiny towards third country banks, including the UK, and whether authorisations and permits will take longer to grant.
David says: “The question is how quickly this [equivalence status] will happen. If the UK government or the regulators want to make changes to the rule book, that could mean equivalence won’t be in place before the UK leaves the EU.”
However, he warns that markets not covered, for example, by MiFID 2, the situation is not clear cut. An example is the undertakings for Collective Investment in Transferable Securities directive aimed at allowing mutual funds to be sold across the EU. “The ability to distribute products is given at the European level and that could be removed or altered once the UK leaves the EU,” says David.