Brexit – Is Equivalence A Solution For Financial Services? – Finance and Banking


Ireland:

Brexit – Is Equivalence A Solution For Financial Services?


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Alongside the continuing challenges of COVID-19 for businesses
and communities globally, Brexit has returned prominently
to the headlines in recent weeks as the deadline for agreeing a
trade deal draws closer. With the chief negotiators continuing
to report little progress on the key issues in the negotiations, it
appears increasingly likely that there will be no agreement in
respect of financial services by the end of this year.  In the
absence of any form of agreement, reliance may sought to be placed
on the existing EU equivalence framework in seeking to minimise
disruption to EU-UK trade in financial services.

In this context, as part of Matheson’s thought leadership on
Brexit, partners from across our financial services teams have come
together to produce an in-depth paper on how the existing EU
equivalence framework operates – and whether or not it offers a
solution to the many challenges for financial services arising from
the UK’s withdrawal from the EU.  Our partners have also
created individual briefing notes summarising the expected legal
impacts arising from no agreement on financial services being
reached by year-end for each of the areas of: investment funds,
insurance, derivatives clearing, banking, MiFID firms, fintech and
payments; together with an analysis of equivalence as a viable or
relevant mechanism in each case.

Whilst the best outcome for all businesses continues to be for a
deal to be reached, the risk of a no-deal Brexit on 1 January 2021
remains high and, consistent with our previously expressed view,
preparation for this scenario is advised.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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