The European Union’s securities watchdog has published guidance to stop national supervisors from competing unfairly with each other to woo financial firms in a post-Brexit rush from Britain.
Dublin complained to Brussels that rival financial centres were offering a “back door” to the EU’s single market through lax rules.
In response to such concerns, the European Securities and Markets Authority (ESMA) said on Wednesday that national regulators need to prepare for greater demand for licences as financial firms in Britain seek to relocate to an EU of 27 countries after Britain’s departure in 2019.
Britain is the EU’s biggest financial market and firms there may need to shift operations to continue serving customers within the bloc.
“The EU27 have a shared interest in building a common approach to dealing with relocating firms that wish to continue to benefit from access to EU financial markets,” ESMA Chairman Steven Maijoor said in a statement.
“Firms need to be subject to the same standards of authorisation and ongoing supervision across the EU27 to avoid competition on regulatory and supervisory practices between member states.”
Full Content: Belfast Telegraph
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