City Corporation response to Brexit withdrawal agreement and future relationship declaration

The UK and European Union have tonight (14 November) published the Brexit withdrawal agreement and an outline of the political declaration on the future relationship. Catherine McGuinness, Policy Chairman at the City of London Corporation, said:

“The announcement that a draft Brexit agreement has been reached between the UK and EU is a significant step towards a deal being finalised.

“The proposed framework for the future relationship provides welcome clarity and offers a foundation for financial services. In particular, the commitment to close regulatory and supervisory cooperation is a positive move that recognises the need for any deal to reflect the City’s unique role in providing services to households and businesses across Europe.

“As we have said, it is vital that a transition period is secured to allow the sector time to work through this complex process and the suggested withdrawal agreement would provide that. Greater clarity is also needed for the European nationals who account for around a fifth of the City of London’s workforce.

“A no-deal Brexit would be in nobody’s interests. Politicians on both sides now need to see through an agreement that benefits both the UK and the EU.

“In the meantime, it is critical that EU regulators work urgently to address cliff-edge issues such as the operation of clearing houses that could disrupt cross-border financial services and threaten financial stability in the event of a no-deal Brexit. It’s reassuring to hear increasing acknowledgment that these issues need dealing with but we need firm action, not just words.”