Blog

18/02/19
A Treasury Committee inquiry into the future of the UK’s financial services once the UK has left the EU.

The Treasury Commons Select Committee is examining what the Government’s financial services priorities should be when it negotiates the UK’s future trading relationship with the EU and third countries and will be taking evidence from industry, regulators, ministers and officials.

The Committee will also look at how the UK’s financial services sector can take advantage of the UK’s new trading environment with the rest of the world, and whether the UK should maintain the current regulatory barriers that apply to third countries.

Commenting on the launch of the inquiry, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, said:

“The UK may converge, seek equivalence, or diverge from the EU. As part of our new inquiry, the Treasury Committee will examine the risks and rewards of each of these choices.”

“We’ll also explore the opportunities outside Brexit, such as FinTech, on which we should be capitalising.”

“We’ll also seek to conclude whether it would be in the long-term interests of the UK to align closely with EU financial rules, or to forgo financial services trade with the EU and pursue trade with other third countries.”

Terms of Reference
The Committee will be considering the following questions:
• What should the Government’s financial services priorities be when it negotiates its future trading relationship with the EU?
• What should the Government’s financial services priorities be when it negotiates with third countries in the rest of the world in order to allow UK financial services access to their markets?
• What regulatory actions are required for each specific segment of the UK financial services industry in order to maximise access to EU markets?
• How can the UK financial services sector take advantage of the UK’s new trading environment with the rest of the world?
• Should the UK open its financial services markets to external competition from countries outside of Europe, or should the UK maintain the current regulatory barriers that apply to third countries?
• What skills and immigration policy will the UK financial services sector need once the UK has left the EU?

There is no set deadline for the submission of written evidence to this inquiry. However, the submission page suggests written evidence should be submitted by 30 April 2019.

Next steps
After taking evidence from industry, regulators, ministers and officials, the committee will make a series of recommendations to the Government and regulators about what it should prioritise in negotiations with the EU and the rest of the world.