LONDON (Reuters) - Britain has not ruled out using equivalence in financial services regulation with the European Union after Brexit but it does not like the EU’s model of it, finance minister Philip Hammond said on Wednesday.
Equivalence is a legal mechanism that allows countries from outside the EU to access the single market in limited circumstances, but access is patchy and can be revoked at short notice.
“I haven’t ruled out equivalence. What I’ve said is that the EU’s model of equivalence, which is unilateral (and) withdrawable on no notice in some cases... would not work,” Hammond said in a speech in London’s Canary Wharf financial center.
“The principle of equivalence, if it’s based on mutual agreement, it’s robust and enduring ... and there are proper procedures ... could be the basis on which we could move forward.”
Reporting by Huw Jones, David Milliken and Andrew MacAskill; writing by Alistair Smout; editing by Stephen Addison