Spokeswoman for the finance ministry declined to comment on the report
According to the Financial Times today, the UK government is ready to push for the kind of Brexit regulation plan that the City of London has long favored, with Chancellor Philip Hammond tipped to endorse the proposals next week.
Under the proposal, Britain and the EU would recognize each other’s regulatory and supervisory regimes. However, a spokeswoman for the finance ministry has declined to comment on the report.
A final decision on the best model to pursue has not yet been taken, the FT quoted allies of Hammond as saying.
Bank of England Governor Mark Carney has previously said Britain and the EU should adopt a system of mutual recognition or run the risk of a damaging hit to financial services across Europe.
A dispute resolution mechanism would be part of the plan, the FT added. Such a proposal is likely to be opposed by the European Commission, which has said Britain cannot pick and choose which parts of the EU’s single market it can retain.
The City’s plan proposed that Britain and the EU would allow cross border trade in financial services on the condition that each side preserve regulatory standards in line with the best international standards.
Britain is home to the world’s largest number of banks and hosts the largest commercial insurance market. About $7.5 trillion— or 37 per cent— of Europe’s financial assets are managed in the UK.