BERLIN (Reuters) – The European Union should make its personal choices and can’t have outdoors legislators deciding on monetary providers guidelines after Brexit, German Finance Minister Olaf Scholz stated on Thursday.
Asked concerning the so-called equivalence system, which relies on Brussels granting entry to the EU for banks, insurers and asset managers from outdoors the bloc if the bloc deems their home guidelines to be comparable sufficient, Scholz stated:
“I regret that developments are now such that it is going to be very difficult for the financial system in Britain.”
“But it is clear that the European Union must, of course, take its own decisions, including on its own within the framework of the democratic structures we have established. There cannot be additional legislators on the outside.”
Britain has stated equivalence is just too one-sided and needs a bespoke buying and selling deal for banks primarily based on mutual recognition or the UK and EU accepting one another’s guidelines.
Reporting by Tom Koerkemeier; Writing by Paul Carrel; Editing by Victoria Bryan