Draft Brexit deal: UK set for restricted financial markets access under equivalence

Regime only covers quarter of EU cross-border financial services business

UK financial services firms are set for more restricted access to European Union (EU) markets under the bloc's equivalence regime following the agreement of a draft Brexit deal, which could force asset and wealth managers to have a permanent presence in the EU27 if they want to continue to do business within the single market.

The draft agreement, on which Parliament will vote on 25 November, is under increasing pressure from across the House of Commons with several Cabinet ministers resigning last week, including Brexit Secretary Dominic Raab. Update: PM May faces backlash over draft Brexit deal as details begin to emerge  The agreement would replace EU membership, which allows for unrestricted access for financial services, with the system of equivalence. The EU can extend equivalence to a number of countries it deems to have comparable regulatory regimes, but only covers a limited range of market part...