UK should not be 'rule taker' in financial services after Brexit, says BoE Deputy Governor

The Deputy Governor of the Bank of England (BoE), Sam Woods, has said it was “undesirable” for the UK to follow EU rules on financial services after Brexit if it will have no role in deciding them. 

Woods argued, “A scenario in which our future relationship with the EU takes a form that means we stick with a system which looks exactly what we have today… is not ideal but we have largely shaped that system through our membership of the EU and we make it work well currently.” 

He added, “However, this would be undesirable if it came with the prospect of becoming a rule-taker in financial services with all the risks — both prudential, and as a matter of industrial policy — that entails.”

Elsewhere, in a letter to EU institutions, the finance ministers of Germany, France and the Netherlands have called for progress on a “well designed” European Capital Markets Union, adding that this is an “urgent strategic issue” as London, “Europe’s leading international financial centre,” will soon be outside the EU.

 They write that there need to be “appropriate ways to endow the European Union with a capacity to finance the growth of its economy and businesses… via private sector solutions and through diverse financing channels.”

Separately, the director general of the Confederation of British Industry, Carolyn Fairbairn, has urged MPs to “resolve” the Brexit “gridlock,” warning that “every day without a deal is corrosive” for the British economy.

Meanwhile, the cross-party talks between the Government and Labour are soon to come to an end without an agreement on a Brexit deal. The party leaders are reportedly discussing how a series of votes could be put to Parliament to find agreement among MPs on how to move forward. However, a senior ally to Prime Minister Theresa May insisted that talks were continuing, saying, “This will require compromises on both sides on substance.”

This comes after the Shadow Business Secretary, Rebecca Long-Bailey, claimed that the Government had still not moved on its red line of a customs union in the talks. Speaking on Radio 4 yesterday, Long-Bailey said, “In terms of the customs union, we’ve been repeatedly pushing [the Government] on this point, and they haven’t reached the position that we would like them to get to by any stretch at the moment.”

Follow EU Today on Social media:

Martin Banks

Martin Banks

Martin Banks is a highly qualified journalist with many years experience of working within the EU institutions. He is an occasional, and highly valued, contributor to EU today, writing on a wide variety of issues.

Related posts