Commons Sense

House of Commons · Ministers' Questions

Financial Services: Equivalence Recognition

Tuesday 26 January 2021 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Discussions on equivalence recognition for financial services between UK and EU officials have taken place over the past 12 months.
  • Government aims to establish a structured regulatory cooperation framework through a memorandum of understanding to discuss future directions of financial services.
  • Officials are continuing to have discussions with the Chancellor to remain ambitious for the financial services sector.

Topics (select to filter)

Questions & Answers

Q1 Stephen Hammond Con
Brexit
Context

Discussions on EU's response to UK's offer of equivalence for financial services, focusing on the relative starting positions.

Question

What discussions he has had with his EU counterparts on equivalence recognition for financial services. Clearly, it would be disappointing if the EU could not follow the UK's offer on equivalence, given the relative starting positions.

Answer from John Glen

Equivalence is an autonomous technical process that each side is undertaking separately. Officials have had a number of meetings with their counterparts in the Commission over the past 12 months to discuss each other's processes, and we remain open and committed to continuing dialogue with the EU about its intentions for equivalence.

Partly answered

Not addressed: The specific commitment on when or if the UK's offer will be followed by the EU was not provided.

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Q2 Stephen Hammond Con
Brexit Business & Trade
Context

Questions about the Government's ambitions with regard to mutual recognition of professional qualifications in the memorandum of understanding being discussed between now and March 2021.

Question

Will my hon. Friend comment on the Government's ambitions with regard to mutual recognition of professional qualifications? What are those ambitions and does he hope that they will be achieved by the signing of the memorandum in March?

Answer from John Glen

Alongside the trade and co-operation agreement, we had a joint declaration to establish a structured regulatory co-operation for financial services and to discuss a whole range of matters around equivalence determinations going forward. The memorandum of understanding will be agreed in discussions between the EU and UK by March 2021.

Partly answered

Not addressed: The specific ambitions or hopes regarding mutual recognition were not detailed.

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Q3 Pat McFadden Lab Wolverhampton South East
Brexit Business & Trade
Context

The Brexit deal's impact on access to European markets for the UK's financial sector, and uncertainty around equivalence recognition.

Question

Can the Minister confirm that it is in fact a Government negotiating aim to secure equivalence recognition for UK financial services in the memorandum of understanding being discussed between now and the end of March?

Answer from John Glen

The equivalence granting process is an autonomous, separate process from the MOU discussion. The MOU is about a framework to evaluate the future direction of financial services across the EU and UK. I remain very ambitious for the financial services sector. The Chancellor and I are continuing to have a dialogue—with roundtables with representatives of the sector this week and next week, as well as one-to-one meetings—to ensure that we listen to the sector.

Partly answered

Not addressed: The specific negotiating aim for equivalence recognition was not confirmed.

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