The uk-eu relationship in financial services

Opportunities
As well as adapting its existing regulatory framework, there are also opportunities 
for the UK to establish new rules in forward-looking and novel areas where 
there is currently limited regulation, particularly in the areas of financial 

---

5
THE UK-EU RELATIONSHIP IN FINANCIAL SERVICES
technology (‘FinTech’) and green finance. In both areas the UK has already 
shown ambition and creativity, which we welcome.
Another potential Brexit opportunity is the pursuit of new trade agreements with 
third countries. Free Trade Agreements often make little provision for financial 
services, but the Government is exploring alternative approaches, most notably 
by negotiating a Mutual Recognition Agreement (MRA) with Switzerland. The 
Committee welcomes this ambition and hopes that an agreement is concluded 
swiftly.
More broadly, the Committee welcomes the Government’s open and non-
reciprocal approach to financial services, though we urge them to continue to 
recognise the importance of immigration and access to talent in ensuring the 
sector remains open for business.
Conclusion
Overall, the outlook for financial services after Brexit seems relatively positive. 
Most of the Committee’s witnesses were optimistic about both the Government’s 
approach and future opportunities more broadly, marking a contrast to some of 
the other sectors of the economy that this Committee and others have examined. 
However, the UK is at an early stage of the adjustment to life outside the EU 
and there is no room for complacency, particularly as the impact of Brexit on 
the sector has not yet fully played out. We therefore urge the Government not to 
disregard the importance of a cooperative and constructive UK-EU relationship 
in financial services.

---

---