Jeremy Hunt, Chancellor of the Exchequer, has signed an agreement on cooperation in financial services with Commissioner Mairead McGuinness, which will help establish a constructive and mutually beneficial relationship between the UK and the EU in the area of financial services.
This comes at a time when the chancellor is in Brussels to hold a series of meetings with European commissioners, in the first visit by a British advisor in more than three years. Commissioner McGuinness is the European Commissioner for Financial Services, Financial Stability and Capital Markets Union.
The MoU marks an important step in post-Brexit UK-EU relations. The UK is a leading global center for financial services – of the £11 trillion in assets under management in the UK in 2020, around 44 per cent is on behalf of international investors including the EU.
The agreement will create an ongoing forum for the UK and EU to discuss voluntary regulatory cooperation on financial services issues. The two sides will exchange information and work together to address common challenges and coordinate positions when appropriate on issues ahead of the G7, G20 and other international meetings.
The UK and EU have committed to the Memorandum of Understanding along with the Trade and Cooperation Agreement. It adds to the growing number of regulatory cooperation arrangements the UK has already in place with key financial sector partners including the US, Japan and Singapore.
In response to the news, Lemonas Norica, CEO, Heavy Finance He said: “Enabling greater economic cooperation between the UK and the EU is critical to driving growth, tackling rising inflation and addressing the climate emergency. In a challenging economic climate, businesses across these markets need access to critical financial support and investment to recruit new talent. reduce emissions and develop a cleaner and more agile business model.
“This simply cannot be achieved without financial systems in place that allow for the regular flow of financing. This agreement is a step in the right direction to further expand international cooperation in the financial services industry and will play a vital role in helping companies transform for the better.
Fintech entrepreneur Khalid Taloker, co-founder of DKK Partners He said: “The UK financial services industry is a key driver of growth and building stronger links with the EU is in our national and economic interest. This agreement is another major step forward in developing a blueprint for a truly prosperous post-Brexit Britain, with strong links With the EU’s large market, but also has the ability to international trade in other parts of the world.
“In the face of stubborn inflation and rising interest rates, giving businesses a boost should be the top priority of the government this year and beyond,” added Talukder.
Jeremy Hunt, Chancellor of the Exchequer, said: “The UK and EU financial markets are deeply interconnected and building a constructive and voluntary relationship is mutually beneficial.
“In the UK, our financial services sector is a true British success story. Together with the related professional services sector, it was worth £275 billion last year, making up an estimated 12 per cent of the UK economy.
“This agreement with our European partners as sovereign partners builds on our arrangements with the United States, Japan and Singapore, helping to support the sector’s role as a global financial services hub.”
While the Chancellor is in Brussels, he will also meet with Valdis Dombrovskis (EC Executive Vice President responsible for an economy that works for people, also responsible for trade) and Margrethe Vestager (EC Executive Vice President for Europe fit for the digital age and competition). He will discuss the UK’s competitiveness and growth, the EU’s industrial Green Deal plan and economic security.