• Login
    Your ProfileLogout
  • join
  • about reply
Avantage Reply Logo
Menu
  • About Us
    About Us
    • About Us
    • History
    • Our Approach
    • Values
    • Alumni
    • Strategic Partners
    • Media Contacts
    • Contact Us
  • Our Capabilities
    Our Capabilities
    • Our Capabilities
    • Risk
    • Finance
    • Conduct & Compliance
    • Technology
  • Newsroom
    Newsroom
    • Newsroom
    • News
    • Events
    • Press Articles
    • Blog
    • Academy
  • Publications
    Publications
    • Publications
    • Briefing Notes
    • White Papers & Practical Guides
    • Case Studies
    • CRO Insights Journals
  • Career
    Career
    • Career
    • BELGIUM
    • FRANCE
    • ITALY
    • LUXEMBOURG
    • NETHERLANDS
    • UK
  • about Reply
  • join
Avantage Reply Logo

Search

Press

Press Article

Equivalence - What does it mean for Financial Institutions?

FOCUS ON: Press,

On 1 November, The Times newspaper reported, a tentative deal had been reached on all aspects of a future EU-UK partnership on financial services, as well as exchange of data and including what would amount to a concession from the EU on bending the ‘equivalence’ rules.

Although a denial from both UK and EU officials followed immediately the news fired up speculations regarding a possible breakthrough in the Brexit negotiations.

On Monday, 5 November, the Financial Times titled:

“Unlikely consensus reigns in Brexit financial services talks“1

This article reinforces the assumption, that post Brexit’s trade in Financial Services might be governed by an Equivalence regime. “Equivalence” means, that decisions are taken independently by each side. Such an arrangement would prevent the necessity of a full-fledged treaty and allow non-EU institutions to do business within the EU in specific areas, under the condition that the businesses‘ home countries are considered to adhere to equivalent standards of oversight.

So, does this in fact mean, there is an agreement to dissolve the uncertainties that Brexit holds for the Financial Services industry on both sides of channel?

Oscar McCarthy, Associate Partner at Avantage Reply and Brexit expert, remains sceptical:

“Relying on an Equivalence regime only covers one-third of financial services activities - for example, it excludes commercial banking, primary insurance, securities trading and corporate lending - and creates significant political risk, since these permissions can be revoked with 30 days notice.

It implies the permanent loss of much of the City’s EU27, non-institutional business, much of which will – given the restrictive nature of Equivalence – need to (re-) booked in an EU entity.”

For an overview of the possible Brexit scenarios and their impact on the Financial Services industry, please refer to our white paper: https://www.reply.com/avantage-reply/en/Shared%20Documents/The-Impact-of-Brexit-on-Financial-Institutions-white-paper.pdf

1 The Financial Times Article, “Unlikely consensus reigns in Brexit financial services talks" (5. November 2018), is available with a paid subscription under: https://www.ft.com/content/3d902998-deb1-11e8-9f04-38d397e6661c

RELATED CONTENTS

22.12.2020 / Risk Management Magazine

Press Article

Blockchain securitization: an innovative technology to boost asset liquidity

The main aim of this paper is to show the potential benefits for the Securitisation process, both in terms of the setup of operations and in the entire product life cycle, derived from the adoption of the Blockchain Technology.

20.11.2020 / LIBOR

Press Article

Äddi LIBOR, Moien Alternative Reference Rates

London Interbank Offered Rate (LIBOR) is the world’s most widely used benchmark for short-term interest rates. It is a reference rate for some $200 to $350 trillion in mortgages, consumer loans, derivatives and other financial instruments, which elevates it to the status of a gauge for the health of the banking system. As of the end-2021, it will cease to exist. This development is both a challenge and an opportunity for the financial industry.

20.10.2020 / Regulatory Reporting

Press Article

Integrated reporting system – The end of the regulatory burden?

In recent years, financial institutions have faced a significant increase in the volume and complexity of regulatory reporting requirements imposed by the supervisory authorities. In this context, institutions are required to submit hundreds of thousands of data points in different templates and formats to various supervisors (European Authorities, national authorities, or both). It is worth noting that the reporting deadlines and frequencies at which data points must be reported to the relevant supervisory authorities vary greatly across national jurisdictions.

 ​
 
 
 
Reply ©​​ 2021 - Company Information
  • Abou​t Reply​​
  • Investors​​​
  • Newsroom
  • Follow Reply on
  • ​
​
  • ​About Avantage ​​Reply
  • Privacy Policy
  • Information (Client)​
  • Information (Supplier)
  • Information (Candidate)