‘Best for the Future, Best for the Interim: Free Trade for the Future’

Best for the Future, Best for the Interim
Free Trade for the Future

Time to Move on Future Trade. Equivalence for transition is best for financial services, says leading City lawyer, Barnabas Reynolds.

As the UK turns the Brexit corner under its new prime minister, the focus will be on trade. The first task will be to transition rapidly to post-Brexit UK-EU trade. Most likely, the new government will offer the EU a standstill from 31st October whilst future trade relations are agreed.

For goods, different routes will be considered. But for a financial services standstill, it should propose an immediate move to an Enhanced Equivalence model from the moment of Brexit.

Unlike most other areas, EU financial services law is in constant flux, particularly given the urgent need to mitigate risk in the (as yet) uncompleted eurozone. In this new analysis, Best for the Future, Best for the Interim: Free Trade for the Future, Barnabas Reynolds explains that Enhanced Equivalence is the only arrangement to achieve a standstill whilst also permitting the UK to do things safely in its own way. It would mean the UK is sovereign in controlling its laws and making vital economic decisions from 31st October – consistent with the Brexit decision.

Read the full text here: Best for the Future, Best for the Interim: Free Trade for the Future

Barnabas Reynolds

A partner at Shearman & Sterling LLP and Global Head of the Financial Services Industry Group. His Politeia publications include A Template for Enhanced Equivalence (2017) and Free Trade in UK-EU Financial Services (2018); he has also co-authored Managing Euro Risk: Saving Investors from Systemic Risk (2020) with David Blake and Robert Lyddon.

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