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Brussels mulls 'pay per access' for financial services post Brexit

By newadmin / Published on Wednesday, 31 Jan 2018 16:51 PM / No Comments / 18 views


Bob

It makes more sense for the financial services companies to pay for access on a company-by-company basis than to have the UK government pay for access.

Posted on 1/31/18 | 4:31 PM CET

Monkeys now endangered species

Good God, its taken the EU 2 years to get that idea.. And someone else had to tell them !

Posted on 1/31/18 | 4:32 PM CET

Juan

@Bob

Yea, like a simple license fee ? That would be a damn good idea !

Posted on 1/31/18 | 4:33 PM CET

Anthony Chambers

@Bob: Agreed. Given that this is retail financial services, a pay to play approach would be fine with me. The market is remarkably small (estimates at £2bn in imports and exports). Clearly, the UK would do the same for EU financial services that want passported services into the UK. The EU should be able to raise maybe £100mn p.a. from that.

Posted on 1/31/18 | 4:37 PM CET

wow – the REAL wow!!

@all and vw
I herewith offer to sacrifice myself for the next batch of dieselmonkeys.

Their brains are superior to mine anyway.

Posted on 1/31/18 | 4:39 PM CET

Juan

@wow

I’m getting peckish, fancy some cake ? 🙂

Posted on 1/31/18 | 4:40 PM CET

sgu66

So the UK is no longer able to have equivalence of standards following BREXIT; I must have missed how the UK financial services will change to such an extent.

Obviously the position of the EU is purely based on the financial product being provided and in no way reflects political decisions. Of course, the fact that the same equivalence standards are being undertaken elsewhere across the world will also mean that the EU cuts itself off from the other big financial centres too…

If you are going to play politics, rather than reality, at least be truthful about it; the EU no longer wants to play as it is not fair that the UK is such a big bully and the EU Commission and members states will hold their breath and scream and scream until they go red in the face just to punish the UK.

Alternatively the UK will run home to mummy and complain that everyone hates it, no one loves it, and we think we will eat worms….

Are politicians really such children?

Posted on 1/31/18 | 4:43 PM CET

Priscilla du Bleu

The whole issue needs no further discussions.

The first Tory ministers just requested in public to halt brexit.

Labour requests these schroedinger assessment studies to be published.

Cabinet earns treeza to finally act or get her derriere firmly kicked.

Half a year from now brexit is as dead as wow’s brain.

Posted on 1/31/18 | 4:44 PM CET

Priscilla du Bleu

Should read: cabinet threatens

Posted on 1/31/18 | 4:46 PM CET

Juan

Obviously the 27 are becoming nervous and are arguing behind the facade of the EU !

Posted on 1/31/18 | 4:46 PM CET

Anthony Chambers

“we simply want to remain in charge of our own rules and the way in which they are applied”. I guess he is not aware that financial services regulation is determined internationally, not by the EU. The EU just implements what is already agreed.

Posted on 1/31/18 | 4:46 PM CET

Priscilla du EUhoo

@Priscilla du Bleu

Hello Priscilla. 🙂

The game is over, you lost.
Now take your bike to the shop, loose some weight.

Posted on 1/31/18 | 4:48 PM CET

KeepCalmAndNegotiate

Of course, these ‘pay to play’ ideas are floated unofficially. Just like every eastern European country’s ‘ideas’ to vote against yet another extension of the sanctions against Russia.

When push comes to shove, nothing will subvert the Commission and M.Barnier – this was clearly illustrated only 2 days ago when the ministers approved the guidelines for phase 2 of the negotiations unanimously, without any debate in under two minutes without any discussion.

There isn’t even any public talk about this supposed ‘pay to play’ scheme, similar to what Hungary, Bulgaria and Greece are saying about voting against extending the sanctions against Russia. And even with that public talk, all of these countries vote in favor of extending the sanctions every 6 months.

I’m not even sure why Politico feels like it needs to report these things just to indulge someone’s fantasy or to get traffic to this. Is it someone making bets whether they trick Politico into putting this up? For all we know, it could be Politico just driving traffic to themselves with fake news, as none of the facts support any of this. It’s just a Trump-esque smokescreen – “a lot of people are saying…” just to get something in the media cycle.

Don’t waste our time, Politico.

Posted on 1/31/18 | 4:48 PM CET

Jacques

Not quite sure how the UK can sell financial services in the EU if it is not subject to (1) the jurisdiction of the ECJ or EFTA courts, and (2) the oversight of the Commission to ensure that regulations are complied with and properly implemented into national law.

Posted on 1/31/18 | 4:48 PM CET

Anthony Chambers

@KeepCalmAndNegotiate: Given that Pay to Play would need to be extremely expensive in order to bridge the gap left. £10bn per year for trade worth £2bn per year. I doubt once anyone looks at it with any seriousness it would make commercial sense. Way cheaper to setup a sales office.

Posted on 1/31/18 | 4:51 PM CET

Priscilla

The UK has to put it on paper ?

So, is the EU is saying, ‘Ask, and it shall be given’… ? I doubt it will be that easy.

Posted on 1/31/18 | 4:53 PM CET

Priscilla du KeepCalmAndNegotiate

@KeepCalmAndNegotiate

Hello Prescilla. 🙂

Posted on 1/31/18 | 4:54 PM CET

Anthony Chambers

@Jacques: Depends what services you are talking about. Wholesale business has never operated under EU rules, it is all done under UK contract law and does not need a passport as the customer comes to London. Retail business needs a passport so that you can sell products directly to a customer. Wholesale is the big beast were the real money is made. Retail is junk really. At £2bn in imports and exports it’s hardly worth worrying about.

People have misunderstood the limited importance of the single market with relation to the vast majority of Financial Service exports.

Posted on 1/31/18 | 4:55 PM CET

Priscilla du KeepCalmAndNegotiate

@KeepCalmAndNegotiate

PS, FYI, Barniers proposal was rejected by the UK.

Posted on 1/31/18 | 4:55 PM CET

Kopella

Oh please, stop with this fake attempt at finding disunity and trying to spin it that Barnier is acting on his own initiative when he is instructed by the EU27 governments what to do. The German vice chancellor, Sigmar Gabriel, supposedly the most hardline of all, already proposed the UK having access to some financial services if it pays and follows EU regulations, Macron too. This is not a new idea. But, it requires the UK to have regulatory alignment with the EU (which has also been agreed upon as regards Northern Ireland). Different ideas being floated is not “disunity” – it’s how ideas and policy are developed.

Posted on 1/31/18 | 4:58 PM CET

YellowSubmarine

Poor old Mr B, his rhetoric is not even working on his own side now.

Posted on 1/31/18 | 4:58 PM CET

wow

Hahahaaaaaa

too funny.

It’s Politico though and they are not professional, they are worse than the tabloids as they pretend to look professional so fool a few federalist EU nutters all the time.

Thanks for the laugh though as it will end up this way.

Posted on 1/31/18 | 5:01 PM CET

Jacques

@Anthony Chambers
Wholesale services carry systemic risk. Hence, the EU’s regulation in this field. For example, CRD IV and CRR contain rules on commercial banking, including deposit-taking, lending, payment services and prudential and authorisation requirements for credit institutions.

It cannot be that a UK operator in the EU does not have to comply with these requirements.

Posted on 1/31/18 | 5:02 PM CET

Priscilla du Kopella

@Kopella

Hello Priscilla. 🙂

Posted on 1/31/18 | 5:04 PM CET

wow

UK has a particular set of high end human capital ‘services’ about 80% of our GDP actually. China just grabbed a load today and signed an agreement. CHina wants to PAY UK for eductaion services and in return ALLOW it’s agriculture sector to be opened to UK exporters.

So UK gets PAID TWICE by China.

That’ll really pickle the germ@ns heads!!!! What?? no cars involved and lose beef sales? What???

hehe too funny. You had access to our world class education and other ‘services’ for free all these years. CHina and India stump up loads of money to us and open up their markets for that kind of access to UK research, lawyers, financial services, technology, AI, fintech… etc…

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Posted on 1/31/18 | 5:06 PM CET

Anthony Chambers

@Jacques: That is why the G7 agreed that proper international finance must occur in major financial centres. Not retail spokes like Frankfurt or Paris. Avoiding International systemic risk is too important a task to leave to the EU.

Posted on 1/31/18 | 5:09 PM CET

Priscilla du Kopella

@Jacques

The word is ‘equivalence’, rules set up to achieve the same or broadly similar result.

Posted on 1/31/18 | 5:14 PM CET

sgu66

Jacques

Quite correct that the operator within the EU should follow the EU rules; however, these rules should not by default apply to how the same operator undertakes activities beyond the EU. Of course, there is a requirement for standards to be upheld in a reciprocal manner, but at present it seems the EU cannot make member states even uphold its own rules, so perhaps further work should be taken before making demands of others.

Posted on 1/31/18 | 5:14 PM CET

Priscilla du Finn

Looks like Barnier is no organ grinder, just a monkey. 🙂

Posted on 1/31/18 | 5:16 PM CET

Priscilla du Finn

The Barnier monkey must be ‘exhausted’ ! 🙂

Posted on 1/31/18 | 5:18 PM CET

Anthony Chambers

The time of 90% of regulations related to the city of London being decided by the UK and 10% by the EU is coming to an end. All services will be regulated in the UK by UK regulators, with reference to internationally agreed standards setting.

Posted on 1/31/18 | 5:19 PM CET

Colin Earnshaw

Here’s alittle reminder why Fianacial Services cannot be ignored or not negotiated by the EU: Mark Carney (head of the Bank of England) in evidence to MP’s said: other EU nations relied heavily on the City for their financial needs and could face major problems if international banks based in London are no longer able to gain easy access to European countries and corporations. Quote: “If you rely on a jurisdiction (i.e. the UK) for three-quarters of your hedging activities, three-quarters of your foreign exchange activity, half your lending and half your securities transactions you should think very carefully about the transition from where you are today to where the new equilibrium will be.” I other words if the EU pulls passporting arrangements or services access they will also risk stuffing their own economies!

Posted on 1/31/18 | 5:19 PM CET

Priscilla du EUhoo

Merkel asked to step down.

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Posted on 1/31/18 | 5:20 PM CET

Jacques

@Anthony Chambers
Hence my original point. There can be no selling of financial services (wholesale or retail) into the EU without full enforcement and compliance with the relevant EU regulations. There can be no effective financial supervision of the EU if a large part of financial services denominated in euros takes place in a third country.

Repatriation of financial services denominated in Euros has therefore to be a priority for the EU and this I believe will drive the negotiations.

@Colin Earnshaw
A recent report (Sapir, Schoenmaker & Véron) from 2017 predicts a drop in the UK share of EU financial services of between 60% and 90%. This would bring with it a slight increase of costs for the EU27, but much less than what the UK would be losing. It will of course not be easy for the EU27 in the short-term, but the long-term gains from having Paris and Frankfurt as leading financial centres are evident.

Posted on 1/31/18 | 5:31 PM CET

Jack Boot

What a marvelous view from this cliff, and yes, looks like the suns coming out.
Now, what did she pack in my lunch box? Could it be, yes, it is, its cake. (Shop bought but hey).

Posted on 1/31/18 | 5:31 PM CET

Juan

@Anthony Chambers

The EU may just offer this as some form of ‘transition period’ for itself.
While it builds up Frankfurt and Paris and gets the UK to pay for it.

Posted on 1/31/18 | 5:34 PM CET

James Dell

The solution is simple – pay as you go in all trade, agriculture, and financial services, at the rate of 20% of any surplus between the EU or UK which is paid yearly as “access fees” from the EU or UK budgets.

For the EU with a 70 billion surplus in trade with the UK this would result in a net payment of 14billion pounds to the UK per year.

As the surplus drops the access costs drop until trade parity when no access fees are paid by either side.

I think this has legs!

Posted on 1/31/18 | 5:37 PM CET

Juan

Apparently France has said ‘NO WAY’…

Posted on 1/31/18 | 5:40 PM CET

Priscilla du Boyan Taksirov

Theresa May safe.

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Posted on 1/31/18 | 5:43 PM CET

Priscilla du Bleu

@Juan
“@wow

I’m getting peckish, fancy some cake ? ”

You can have our crumbs ….. if you can pay for them!

Posted on 1/31/18 | 5:45 PM CET

Priscilla du Boyan EUhoo

The leaked paper is rubbish

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Posted on 1/31/18 | 5:45 PM CET

Priscilla du Boyan Saintixe

Bespoke !

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Posted on 1/31/18 | 5:46 PM CET

sgu66

I wonder if the Swiss are now worried too?

Posted on 1/31/18 | 5:46 PM CET

wow

@Priscilla

cry cry brexit won;t happen anyway…

I know the British people. The EU27 and yourself clearly haven;t got a clue (literally).

All the crying, moaning propaganda, creaming and childish behaviour in the world from the Eu27 and anybody else in or out of the UK will not impress anybody or make the slightest bit of difference.

It could have the opposite effect. And ensure a brexit will happen.

But either way it will not make the slightest bit of difference. We look on adults who behave like this in a democracy, something similar to a child who has been told they cannot have candy or a monarch from pre-1608 before we took all their powers away.

In a word.. we’ve seen it all before. We are a mature country with a long long history.

Now run along kid.

Posted on 1/31/18 | 5:47 PM CET

Priscilla du Boyan EUhoo

The papers are complete rubbish because the UK government is rubbish

Posted on 1/31/18 | 5:48 PM CET

Let’s block ads! (Why?)



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