From WN

The Times was reporting Prime Minister Theresa May had struck a deal with Brussels on Wednesday which would give the United Kingdom’s financial services companies continued access to European markets after Brexit.

Government sources said British and European negotiations were able to reach a tentative agreement on the aspects of a future partnership on services along with the exchange of data.

Brexit secretary Dominic Raab sent a letter to the Commons Brexit committee yesterday which said the British government believed it would complete the negotiations within three weeks.

Even though Raad said the Northern Ireland issue was a matter of concern, “we are not that far from an agreement on this issue. The end is firmly in sight.”

Though Nicky Morgan, who chairs British parliament’s Treasury Select Committee, said it could take decades for Britain to figure out the financial services industry regulation after Brexit, according to Reuters.

Britain and the EU need to reach a “standstill” or business as usual transition deal after Brexit which is scheduled for March 2019, but the country will need to create new trading terms with the bloc from the end of 2020.

EU officials have said equivalence, the EU’s financial market access system that Brussels grants access to foreign banks and insurers if their rules meet those of the block, would likely be the best bet for London.

Morgan was speaking at an industry conference on Wednesday which said the Treasury committee would look at equivalence and post-Brexit financial services in early 2019.

“The story of the next 40 years of this country, or it could be longer, in relation to that future relationship with the EU, is going to be whether we converge, stay the same or whether we choose to diverge and go our own way,” Morgan told the Personal Investment Management & Financial Advice Association annual conference.

The plan for equivalence is uncertain since it would exclude some major financial activities, such as commercial lending, but Britain would like to retain some of its largest export sector with the EU.

Misleading press articles today on #Brexit & financial services. Reminder: EU may grant and withdraw equivalence i…https://t.co/0GmEsfRQpJ

24#Brexit,

James O’Brien
@mrjamesob

I presume this is quite a big deal.https://t.co/0AzQzI8T65

27219

Richard Corbett
@RCorbettMEP

The reported deal to allow some post-#Brexit access to European markets for UK #FinancialServices means Britain hav…https://t.co/9RQZsvCnr3

#Brexit,FinancialServices,

Richard Monks, acting director of strategy at the Financial Conduct Authority, said EU regulators would be prepared if Britain was out of the bloc next year without a transition deal in place.

“On day one, we will be very closely aligned,” Monks said.

Monks also said the FCA wants Britain to stay closely aligned with the EU, but Britain would not have to copy all of the bloc’s rules.

But he also noted Brexit would present an opportunity for Britain to step back and review their own financial rules.

He also said FCA rules could be embedded into financial firm’s systems to eliminate compliance costs, but artificial intelligence advancements could help regulators to discover financial advisers that are likely to mis-sell products.

“In the very longer term, this could result in some automated regulatory responses, some form of robo regulators.”

–WN.com, Maureen Foody

For more on this story go to: https://article.wn.com/view/2018/11/01/May_Reaches_Tentative_Brexit_Deal_On_Financial_Services_For_/