The EU and UK are to set up a formal means of cooperating on risk management in financial services in the run up to May next year, when Brexit officially takes place
The Treasury and the European Commission have asked the European Central Bank (ECB) and the Bank of England (BoE) to convene a technical working group on risk management in the period around 30 March 2019 in financial services.
This technical work is separate from the on-going negotiations on the withdrawal agreement between the EU and the UK and from the negotiations on the overall understanding of the framework for the future relationship between the EU and the UK.
The group will be chaired by the president of the ECB and the governor of the BoE. The European Commission and the Treasury will attend as observers and other relevant authorities will be invited on an issue-specific basis. The ECB and BoE will report regularly to the European Commission and the Treasury.
Huw Evans, director general of the Association of British Insurers (ABI), said: ‘This is a pragmatic step from the UK and EU. The ABI has long been calling for regulatory co-operation to provide legal certainty on key areas for customers and insurers.
‘Positive dialogue between UK and EU regulators is essential to ensure an orderly Brexit and open relationship in the future.’
The legal text of the draft withdrawal agreement agreed between the EU and UK negotiators covering the transition period would mean, when ratified, that EU law, including in relation to financial services, shall be applicable to and in the UK until 31 December 2020.
Report by Pat Sweet
