Financial Services

Treasury written question – answered on 10th September 2018.

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Photo of Matthew Pennycook Matthew Pennycook Shadow Minister (Exiting the European Union)

To ask the Chancellor of the Exchequer, what advice his Department has issued to the financial sector on contract continuity (a) during the implementation period and (b) after 31 December 2020.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The UK and EU negotiating teams reached a hugely important milestone in the Brexit process by agreeing the terms of a time-limited implementation period (IP).

The documentHM Treasury’s approach to financial services legislation under the EU (Withdrawal) Act 2018,” published by HM Treasury on 27 June 2018, sets out that during the IP, access to one another’s markets will remain unchanged and firms will be able to trade on the same terms as now until 31 December 2020. This will allow citizens and businesses in the UK and across the EU to plan with confidence for life after our withdrawal, on the basis that businesses can operate as now throughout the IP.

The White Paper, “The future relationship between the United Kingdom and the European Union,” published on 12 July 2018, sets out HMG’s position on the future relationship in financial services with the EU. As set out in the White Paper, the UK is seeking a future UK-EU relationship which continues to facilitate economically beneficial cross-border financial services, with a scope that reflects global business models. The White Paper also includes a proposal to protect consumers and businesses through a commitment that existing contracts can be fulfilled even if access is withdrawn. The effect of the agreement would be to provide stability for the UK-EU financial ecosystem.

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