London Daily

Focus on the big picture.
Wednesday, Jul 30, 2025

Britain pursues Brexit finance plan, door open to EU firms

Britain pursues Brexit finance plan, door open to EU firms

Britain left the door open for European Union financial firms to operate in Britain after a post-Brexit transition period ends on Dec. 31, pledging on Monday to help “renew” the City of London’s pre-eminence in global finance.

Britain left the door open for European Union financial firms to operate in Britain after a post-Brexit transition period ends on Dec. 31, pledging on Monday to help “renew” the City of London’s pre-eminence in global finance.

Finance minister Rishi Sunak said he was no longer waiting for Brussels to decide on access to its markets in return and castigated the EU for holding out on a deal key to Britain’s 130 billion-pound ($171 billion) financial sector.

“Where others might wish to use equivalence as a political weapon, that won’t be our approach,” Sunak told parliament.

The European Commission has said it was waiting for more information from Britain about its intentions to change financial rules before making further equivalence decisions.

Brussels grants access to its markets if the rules for foreign financial firms in their home country are deemed to be equivalent or as robust as regulation in the bloc.

The EU has said it will allow only UK clearing houses to access the bloc for 18 months from January, meaning the bulk of Britain’s financial activities still face being cut off and forcing banks and insurers to use new hubs in the bloc.

London and Brussels remain locked in talks about a broader trade deal less than two months before the scheduled end to the transition period.

Access to EU markets for Britain’s huge financial services industry is being treated separately.

Sunak said he would push ahead to grant access for a range of EU financial firms, but he also excluded some key sectors pending further negotiations.

“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial centre,” he added.

“By taking as many equivalence decisions as we can in the absence of clarity from the EU, we’re doing what’s right for the UK and providing firms with certainty and stability.”

GREEN BONDS


Britain’s access for EU financial firms would cover credit rating agencies, derivatives transactions, financial benchmarks and short-selling.

It would also avoid UK banks having to increase capital buffers to cover exposures to EU sovereign debt, but it did not include swathes of securities trading that form a core of existing cross-border activity.

The finance ministry said it was not ruling out further equivalence decisions if they were in Britain’s interests and it remained open to further dialogue with the EU.

“This leaves out 99% of cross-border financial services and is unaccompanied by any corresponding move from the EU to benefit UK firms trading into Europe,” Simon Morris, a financial lawyer at law firm CMS, said of the move.

Sunak set out other measures to bolster Britain’s attractiveness, including a new taskforce to propose reforms to rules for companies that list in London, in a bid to compete with rival centres like New York in attracting tech firms.

He also announced plans for the first sale of “green” government bonds to raise funds for environmentally friendly investment.

Bank of England Governor Andrew Bailey said Sunak’s announcements demonstrated a commitment to ensuring “our financial centre remains open to the world”.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×