In his speech, Mr Hammond commented on Brexit and financial services, stating that any fragmentation of financial services would result in poorer quality, higher priced products.
Avoiding fragmentation of financial services is a "huge prize" for the European economies and should be approached using the following principles:
- There needs to be a new process for establishing regulatory requirements for cross-border business between the UK and the EU. It must be evidence-based, symmetrical and transparent. It must also reflect international standards.
- Co-operation agreements need to be reciprocal, reliable, and prioritise financial stability. They must also enable timely and co-ordinated risk management.
- Any arrangements must be permanent and reliable for the businesses regulated under the regimes.
See article here on trading in the EEA. http://ifac.eu/cityuk-report-brexit-and-financial-services-sector