It appears that the deal contains broad declarations in ensuring "continued market access" for financial services. There is, however, no agreement on equivalence rights. The summary document from the UK noted that further discussions on "specific equivalence determinations" are needed.
The Wall Street Journal noted that "[i]t isn’t entirely clear how [the agreement] will affect financial services".
Both sides had agreed during the negotiations to discuss financial services separately. The U.K. government said in a document published Thursday that the agreement includes provisions to support trade in services, including financial services and legal services.
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The sides will continue discussing how to move forward on granting equivalence and pledged to codify a framework for regulatory cooperation.
Indeed, some are calling for more discussions to be done promptly in the area of financial services. From the same WSJ article:
Bob Wigley, chair of UK Finance, the trade association for financial services firms, said there was more work to be done.
“It will be important to build on the foundations of this trade deal by strengthening arrangements for future trade in financial services,” he said in a statement. “This can be achieved by building on the longstanding regulatory dialogue and supervisory cooperation between UK and EU authorities and reaching agreements on all appropriate equivalence determinations as soon as possible.”
The text of the agreement has yet to be released. From the summaries released by both sides, I have identified the relevant portions relating to financial services and quoted them below.
Section 6 - Financial Services
The Agreement includes provisions on cross-border trade in financial services and investment that will secure continued market access. The Agreement provides protections that will ensure that our regulatory and supervisory authorities will be able to act to ensure financial stability, market integrity and protect investors and consumers.
The Parties have agreed a joint declaration setting out their commitment to these shared objectives and have agreed to enhanced cooperation as well as information sharing and bilateral dialogue in order to establish a durable and stable relationship.
The declaration reaffirms the integrity of our respective, autonomous equivalence frameworks. The Parties will discuss how we move forward on specific equivalence determinations. The Parties will codify the framework for regulatory cooperation in a Memorandum of Understanding.
– Summary Explainer, page 14
UK service suppliers no longer benefit from the ‘country-of-origin’ approach or ‘passporting’ concept (e.g. for financial services), which enable automatic access to the entire EU Single Market
– A new relationship, with big changes - Overview of consequences and benefits
In addition, the Agreement does not cover any decisions relating to equivalences for financial services.
– A new relationship, with big changes - Brochure
Potential EU unilateral measures
Not subject to negotiation:
- Adequacy decision on data protection
- UK third-country SPS listing
- Equivalences in financial services
– A new relationship, with big changes - Brochure
(emphasis mine)
Similarly, UK service suppliers in the EU will have to comply with host-country rules in each Member State, and will no longer benefit from the country-of-origin principle, mutual recognition (e.g. of professional qualifications), or passporting rights for financial services. UK service suppliers and investors can also establish themselves in the EU in order to offer services across the Single Market.
– A new relationship, with big changes - Brochure