The uk-eu relationship in financial services

The Committee welcomes the series of bilateral Memoranda of 
Understanding that have been agreed between UK and European 
regulators and supervisors at both EU-wide level and Member State 
level. These appear to be working well and have meant that day-to-
day regulatory and supervisory cooperation has continued despite 
the lack of a higher-level UK-EU Memorandum of Understanding.
Political and diplomatic cooperation
131. As well as formal structures, ad hoc UK-EU cooperation on financial services 
can also take place at political and diplomatic levels. During the Committee’s 
inquiry, for example, Commissioner McGuinness met the Economic 
Secretary on 16 March 2022, and the Governor and Deputy Governor of 
the Bank of England on 29 March 2022.
170
New Financial argued that these 
meetings represented “encouraging steps towards ‘normalisation’ in these 
relationships”.
171
In addition, the Economic Secretary also highlighted his 
bilateral engagements with his counterparts in Member State capitals, such 
as Madrid and Luxembourg.
172
132. However, despite the Economic Secretary’s recent meeting with the 
Commissioner, it emerged that the two have not established any regular or 
structured pattern of meetings. The Minister told the Committee: “I had 
a conversation with [the Commissioner] a couple of months ago and I am 
sure we will speak again. We do not have a fixed moment where we agree to 
speak, but it was a very professional and cordial conversation about issues of 
mutual interest.”
173
133. 
Alongside formal regulatory cooperation, the Committee urges the 
Government to increase its political and diplomatic engagement on 
financial services both with the European Commission and with key 
Member State capitals.
134.