Financial Services passporting, equivalence and the UK post-Brexit
Financial Services passporting, equivalence and the UK post-Brexit

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Financial Services passporting, equivalence and the UK post-Brexit
  • The status of the UK’s single market membership
  • What is passporting?
  • Brexit White Paper—the future relationship between the UK and EU
  • The temporary permissions regime for inbound passporting EEA firms and funds
  • ‘No deal’ Brexit scenario for financial services
  • Third country regimes and equivalence
  • How does the Commission assess equivalence?
  • The implications of an equivalence determination
  • Alternative forms of access to the EU markets
  • more

The status of the UK’s single market membership

The EU single market is an economic area in which barriers to trade between its members have been removed. The single market is based on the ‘four freedoms’: free movement of goods, services, capital and labour. The free movement of services is the key freedom in a financial services context. For EU Member State members of the single market, there are no customs duties, tariffs or quotas on trade in goods. The single market also aims to create a level playing field by removing non-tariff barriers such as regulations (for example on packaging, labelling or documentation) or technical specifications. Other countries such as China and the US also export large amounts to the EU and therefore also have access to the single market in the sense that they can export to the EU, but their exports must comply with EU rules and regulations. Imports into the EU from these countries are subject to any relevant tariffs, quotas or non-tariff barriers, unless these are removed by a free trade agreement with the EU. Countries trading with the EU on these terms are not required to accept free movement of people, make contributions to the EU’s finances or be subject to the European Court of Justice.

The EU passporting system for banks