Theresa May steps back from plans for the City of London to have “mutual recognition” with the EU on financial services rules.
A new approach, based on the principle of equivalence, will be set out in her much anticipated White Paper.
The proposal will effectively be like “cohabiting but without the same commitment as marriage.”
Britain is prepared to have a much more distant relationship with the European Union’s financial services sector after Brexit, and is ready to move away from plans for a system of “mutual recognition,” according to a report from the Financial Times.
Prime Minister Theresa May has moved on from mutual recognition — which would have meant the UK recognising EU regulations around the financial services industry, and the EU doing the same with the UK, with both sets of rules closely aligned.
Instead, she will set out an approach one person who has seen the paper described to the FT as being like “cohabiting but without the same commitment as marriage.”
“Mutual recognition was like a marriage,” the person said.
“The new model is like cohabitation, with close collaboration, a shared approach to finances and decisions and obligations to each other, but ultimately separate people making their own choices.”
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Source:: Businessinsider – Politics