OUR

POSTS

Future Relationship Between The EU and The UK



EU AND UK NEGOTIATING POSITIONS ON FINANCIAL SERVICES


EU

Directives for the negotiation of a new partnership with the United Kingdom of Great Britain and Northern Ireland Council of the European Union 5870/20 (46pp) 25 February 2020

https://www.consilium.europa.eu/media/42736/st05870-ad01re03-en20.pdf


UK

The future relationship with the EU : UK’s approach to negotiations HMG CP211 (36pp) 27 February 2020

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/868874/The_Future_Relationship_with_the_EU.pdf


Formal negotiations on a ‘deal’ start on 2 March 2020 (today).


Last week both the EU and the UK published their respective negotiating positions with respective to the ‘new partnership’ (EU) and ‘future relationship’ (UK) in two mercifully short documents.


The purpose of this article is to give a succinct account of both documents key points as they relate to financial services and the parties’ attitude to negotiating a ‘deal’.


Some preliminary points:


  • For the most part both documents are bland and consist of meaningless platitudes in sharp contrast to the strident public positions taken by both parties in the media.

  • Very little is said about financial services.

  • The EU have three paragraphs on ‘cooperation on financial services’ and one on ‘anti-money laundering and counter-terrorism financing’ in a document of 172 paragraphs.

  • The UK have three paragraphs on ‘financial services’ and one on ‘equivalence in financial services’ in a document of 64 paragraphs. There is no mention of AML/CTF issues.

  • Overall, the drafting of the documents reflects the difference in the civil law (EU) and common law (UK) approaches.