The services of London-based financial services, including funds, banks and insurers are likely to be capped in their access to EU’s single market regime.
Bloomberg has reported, citing a draft document, that the European Union plans on providing British-based financial services companies only limited access to its Single Market after Brexit.
As per the draft guidelines, the EU’s trade relationship with Britain after Brexit would be similar to its trade deal with Canada.
These draft proposals is likely to significant impact London’s financial services, including insurers, banks, and funds who will have only limited ability to sell their services to European companies.
EU officials are not agreeable to any trade model that would see Britain retain free unfettered access to EU’s single market regime, post Brexit.
As per Bloomberg’s report, any potential trade with Britain, which includes services, will have severe restrictions. Services could be provided under “host state rules”, including the right of establishment for providers, said Bloomberg.