London Daily

Focus on the big picture.
Saturday, Mar 14, 2026

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
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
×