Regulators in Britain and the European Union reach an agreement to avoid disruption in cross-border asset management even in case of a No-deal Brexit. Britain left the EU in January, but full access to the European market has continued under a transition agreement that ends in December.
Negotiations of a new UK-EU trade pact have stumbled, and Britain’s requests for direct financial market access are being looked into separately by Brussels.
The European Securities and Markets Authority (ESMA) and Britain’s Financial Conduct Authority (FCA) said that memoranda of understanding (MOUs) drawn up in February 2019 in case Britain left the bloc without a transition deal “remain appropriate”.
They will now come into effect after the end of December, when the transition period expires, ESMA and the FCA said in separate statements.