Britain and the European Union have agreed on a memorandum of understanding on financial services, according to Bloomberg. The memorandum sets out a framework for regulatory cooperation and a joint forum for discussing rules and procedures, as well as, sharing of information.
The content and substance of the deal has been finalized and the two sides are now working on the formal process of the validation.
The deal could help finance firms in the City of London to win back some access to the single market they lost when the UK left the EU.
The memorandum is separate from any decision on equivalence, a series of unilateral rulings that each side can make that offer market access to financial services.
Since Britain exited the EU at the beginning of 2021, London-based financial firms have been largely unable to operate in the block forcing major banks to ship assets and staff to the continent.
EU officials expect to secure a common framework around financial services rules to unlock some limited equivalence decisions that allow UK firms access to the wider EU market.European stocks and the pound gain as the euro loses. EURGBP is down 0.09%, FTSE 100 is up 1.00%, DAX is up 0.84%
