View more on these topics

City pushes for Swiss-style EU trade deal

EU-Euro-Europe-Eurozone-700x450.jpg

City of London officials are lobbying for a unique trade deal with Europe that will build on the model Switzerland has with the EU.

According to the Financial Times, lawyers and bank bosses have been working on a plan to present to the Cabinet committee for Brexit, led by Prime Minister Theresa May, in early September.

A City taskforce, chaired by Santander chair Shriti Vadera, was given a blueprint for the UK’s relationship with the EU once it has left the union. The report came from the British Bankers’ Association, advised by law form Clifford Chance and Global Counsel.

BBA chief executive Anthony Browne reportedly wants a bilateral deal with as much two-way market access as possible.

The Swiss model gives some financial sectors – including life insurance – full two-way access through passporting rights while maintaining regulatory equivalence with the EU.

The City is expected to argue that because the UK is the biggest export market for the rest of the EU it should be able to negotiate an enhanced version of the Swiss model.

One potential hurdle to the UK achieving a bespoke trade deal is the EU pushing for the UK to accept freedom of movement across Europe if it wants single market access.

May reportedly wants initial positions to be ready in Autumn.

A Treasury spokesperson says: “We are actively engaged with the financial services sector and welcome its input as we prepare for the negotiations to exit the EU. Our position is absolutely clear, Britain remains open for business and we will work hard to get the best deal possible deal.”

Recommended

Home-House-Money-Property-700x450.jpg

House price rises slowing post-Brexit: Halifax

House prices in July fell 1 per cent on June, according to the latest Halifax house price index. However, the index shows prices in July were up 8.4 per cent on the same period last year. Q2 house prices were also 1.6 per cent higher than in Q1. The average house price is £214,678, according […]

House-Property-Ladder-Rising-Prices-640.jpg

Mortgage approvals have ‘further to fall’ after post-Brexit dip

Mortgage approvals dipped in June following the UK’s decision to leave the EU but economists are predicting these may still fall further given wider economic uncertainty. Bank of England data published today shows total mortgage approvals fell by around 2 per cent month-on-month from 122,158 to 120,215. This was driven by the number of house […]

FCA logo new 3 620x430

Treasury committee calls for break-up of ‘overloaded’ FCA

MPs in the influential Treasury committee are calling for the Financial Conduct Authority to separate out its enforcement division following a damning report in the collapse of HBOS. In a report published yesterday, the committee said an “independent enforcement function” should sit between the FCA and PRA. It says the current system – where one […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]

Newsletter

News and expert analysis straight to your inbox

Sign up