Equivalence: Difference between revisions
imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Layout.) |
||
| (7 intermediate revisions by the same user not shown) | |||
| Line 11: | Line 11: | ||
<span style="color:#4B0082">'''''Equivalence and passporting'''''</span> | :<span style="color:#4B0082">'''''Equivalence recognition unlikely'''''</span> | ||
:"In addition to disrupting supply chains, Brexit has caused some fragmentation of banking activity for corporates. | |||
:It seems increasingly unlikely that we shall see ‘equivalence’ recognition for UK/EU financial services that were not covered by the Trade & Cooperation Agreement." | |||
:''The Treasurer magazine, Issue 4, 2021, p31 - Treasury in 2022.'' | |||
:<span style="color:#4B0082">'''''Equivalence and passporting'''''</span> | |||
:"In brief, equivalence is the willingness of one regulator to accept that another regulator's rules achieve the same regulatory outcomes as their own, and so some element of cross-border activity can be allowed. | :"In brief, equivalence is the willingness of one regulator to accept that another regulator's rules achieve the same regulatory outcomes as their own, and so some element of cross-border activity can be allowed. | ||
| Line 24: | Line 33: | ||
== See also == | == See also == | ||
* [[Brexit]] | * [[Brexit]] | ||
* [[EU-UK Trade and Cooperation Agreement]] | |||
* [[European Economic Area]] | * [[European Economic Area]] | ||
* [[European Union ]] | * [[European Union ]] | ||
* [[Four way equivalence model]] | |||
* [[Free movement of labour]] | * [[Free movement of labour]] | ||
* [[Gold-plating]] | |||
* [[Harmonisation]] | |||
* [[Passporting]] | * [[Passporting]] | ||
* [[Prudential Regulation Authority]] | * [[Prudential Regulation Authority]] | ||
* [[Schengen Area]] | * [[Schengen Area]] | ||
* [[Single Market]] | * [[Single Market]] | ||
== Other links == | |||
[https://ukandeu.ac.uk/rethinking-uk-financial-services-regulation-after-brexit/ Rethinking UK financial services regulation after Brexit, UK in a Changing Europe, December 2020] | |||
[https://www.instituteforgovernment.org.uk/explainers/future-relationship-equivalence UK-EU future relationships: options for equivalence, Institute for Government, February 2020] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 06:14, 28 December 2022
European Union (EU) regulation.
In certain cases the EU may recognise that a non-EU legal, regulatory and/or supervisory regime is 'equivalent' to the corresponding EU framework.
That recognition, in turn, means authorities in the EU may rely on supervised entities’ compliance with the equivalent non-EU framework, and allow the entity to operate more freely than it might otherwise be able to (without equivalence).
This approach is designed to bring benefits to both the EU and third-country financial markets.
The significance of the equivalence concept, for UK financial services, is that the UK might choose, post-Brexit, to keep its regulatory regime closely aligned with the EU regime, in order to benefit from the possibility of equivalence.
- Equivalence recognition unlikely
- "In addition to disrupting supply chains, Brexit has caused some fragmentation of banking activity for corporates.
- It seems increasingly unlikely that we shall see ‘equivalence’ recognition for UK/EU financial services that were not covered by the Trade & Cooperation Agreement."
- The Treasurer magazine, Issue 4, 2021, p31 - Treasury in 2022.
- Equivalence and passporting
- "In brief, equivalence is the willingness of one regulator to accept that another regulator's rules achieve the same regulatory outcomes as their own, and so some element of cross-border activity can be allowed.
- Equivalence must be agreed, but is subject to negotiation, market by market.
- Passporting is the acceptance that once permitted to trade in one state, a business can trade in another without further compliance requirements."
- The Treasurer magazine, March 2017, p12 - Technical briefing.
See also
- Brexit
- EU-UK Trade and Cooperation Agreement
- European Economic Area
- European Union
- Four way equivalence model
- Free movement of labour
- Gold-plating
- Harmonisation
- Passporting
- Prudential Regulation Authority
- Schengen Area
- Single Market
Other links
Rethinking UK financial services regulation after Brexit, UK in a Changing Europe, December 2020
UK-EU future relationships: options for equivalence, Institute for Government, February 2020
