2017 for the UK and the rest of Europe seems to have been
primarily a year devoted to implementation – both of
political decisions already made and of legislation that had
already been enacted.
On the political front, Brexit continued to dominate many
conversations around EU financial services. Theories
circulated that EU decisions on various equivalence and
passporting provisions, intended to be based on regulatory
system comparisons, were being delayed for political reasons
linked to the continued non-finalisation of a deal on the
post-Brexit relationship between the UK and the rest of the
After Brexit, it is likely that UK financial services
entities will lose the benefit of EU financial passports, and
may need to try and utilise the existing provisions on
equivalence for non-EU countries. Given that the UK, as a
member state of the EU, already has such standards in place,
granting equivalence status to the UK post-Brexit would be a
logical step. But politics and logic make strange bedfellows.
UK financial services entities will be watching this area
closely in 2018.
Click here for Morrison & Foerster and
annual outlook report
, which sets out a summary of the
progress of some important areas of financial regulation in
2017 and look ahead to expected developments in 2018.