London Daily

Focus on the big picture.
Tuesday, Aug 04, 2026

UK financial sector will be largely cut off from EU for years, EU lawmakers told

UK financial sector will be largely cut off from EU for years, EU lawmakers told

The long-delayed forum for European Union and British financial regulators won't reopen the door for London's financial centre to the bloc, EU lawmakers were told on Tuesday.

The Windsor agreement on EU-UK arrangements for Northern Ireland will mean that the delayed UK-EU memorandum of understanding (MOU) for a regulatory forum will be implemented, raising hopes of improving market access later on.

"This could really unlock cooperation, but it's our view there won't be that many material changes coming out of the MOU and the regulatory forum in terms of cooperation between the UK and the EU," Thorsten Beck, director of the Florence School of Banking and Finance, told the European Parliament.

"It's more like a long term process going forward."

Beck and Christy Ann Petit, assistant professor at Dublin City University, were being questioned by lawmakers over a report they wrote for the EU parliament on post-Brexit financial services in Britain.

Britain is struggling with identifying post-Brexit growth opportunities and the prospect of regaining broad access to the EU financial market is limited, the report said.

While Britain has begun to downplay the need for major divergence with the EU, the EU has proposed a draft law to force banks and asset managers to shift chunks of euro derivatives clearing from London to the EU.

Beck said there was a tension between the UK government pushing for a globally competitive financial sector, and UK regulators focusing on financial stability.

"There will be pressure on regulators to compromise stability in favour of competitiveness at some point," Beck said.

Britain's finance ministry has said it won't "unlearn" lessons from the global financial crisis or undermine the independence of regulators to keep the financial system stable and protect consumers.

Petit said she did not expect major divergence between EU and UK rules, given Britain seeks to comply with international financial rules.


Newsletter

Related Articles

0:00
0:00
Close
Apple Seeks Court Order to Stop OpenAI Using Alleged Trade Secrets
Breaking With the Past: One of the World’s Smallest Countries Changes Its Name
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Comcast: Tied to a Chair and Hit in the Face With Cake: The Regular Humiliation Ritual at the US Corporate Giant
Aston Martin Faces Legal Threat Over £550m Rescue Deal
Reform UK Wants the Royal Navy to Return Channel Boats to France
US and Japan Step In to Support the Yen in Rare Joint Intervention
The AI Pricing Problem: Companies Cannot Predict Their Own Bills
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Apple’s OpenAI Lawsuit Becomes a Public Fight Over AI Hardware
UK Man Jailed After Keeping His Mother’s Body in a Freezer and Claiming £78,000
A SpaceX Rocket Is About to Crash Into the Moon — and Scientists Hope to Watch
World War II munitions discovered after wildfires in southern France
BP profits reach four-year high amid Middle East conflict
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
UK Driver Sentenced to Four Years for Staged Electric Vehicle Brake Failure Fraud
Conservative Party and Reform UK Face Scrutiny During Clacton By-Election Campaign
Ministry of Justice Reviews Early Release Rules After Public Anger Over Police Killer Cases
NHS Radiographers Report Rising Racist Abuse From Patients Across UK Hospitals
UK Banking Regulators Face Pressure After Customer Loses Fourteen Thousand Pounds in AI Voice Scam
Research Challenges Treasury Control Over UK Public Spending and Calls for Greater Local Decision-Making
Home Office Begins Four-Week Weapons Surrender Campaign Across Major English Cities
Southern England Records Driest July in Nearly Two Centuries as Drought Concerns Grow
Apple Challenges UK Government Request for Access to Encrypted User Data in Legal Fight
BP Reports Sharp Profit Increase as Middle East Conflict Drives Global Oil Prices Higher
Nigel Farage Expresses Openness to Potential Alliance with Restore Britain
AstraZeneca Merger Talks Reflect Intensifying Pharmaceutical Consolidation
University Merger May Set Template for Higher Education Reform
Apple's Legal Challenge Highlights Growing Tension Over Encryption and Surveillance
Prime Minister Andy Burnham's Agenda Signals Shift Toward Greater Regional Devolution
Mental Health Trust Faces Criticism Over Planned £25 Million Budget Cuts
Scientists and Cultural Leaders Call for Funding to Save Jodrell Bank Observatory
UK Manufacturing Output Reaches Highest Level in Nearly Two Years
University of Greenwich and University of Kent Complete Landmark Merger
Nigel Farage Unveils Naval Border Proposal Amid Questions Over £5 Million Donation
Prime Minister Andy Burnham Pledges Tougher Action on Small Boat Crossings
Apple Challenges UK Government Over Encrypted Data Access Demands
AstraZeneca Shares Fall After Reports of $400 Billion Bristol Myers Squibb Merger Talks
Triple Lock Lifts UK State Pension but Leaves a Wider Retirement Gap
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Two Firefighting Crew Members Die in Helicopter Collision West of Athens
Public Sector Automation Through Artificial Intelligence
Regional Investment Beyond London
Protection of Strategic Technology Assets
UK Competition Regulator Blocks Major Foreign Takeover of British Quantum Computing Firm
×