UK and EU financial reforms will have modest impact
Friday, December 30, 2022
Significance
UK Chancellor Jeremy Hunt unveiled the 'Edinburgh Reforms', which seek to loosen regulations in order to boost post-Brexit growth and innovation. EU reforms include plans to reduce European dependence on UK clearing houses by forcing European investors to open accounts at clearing houses located in the EU.
Impacts
- Pressure from Conservative Party MPs will force Prime Minister Rishi Sunak to keep regulatory divergence high on the political agenda.
- London will focus on closer cooperation with countries such as Singapore and Switzerland to offset the decline in trade with the EU.
- The EU may permit European banks and investors to continue using UK clearing houses beyond 2025.