Transition Period
During the transition period, (also known as the implementation period), financial services firms in the UK will be largely able to operate as usual, including passporting. However, during this period the EU and UK will be carrying out equivalence assessments.
Backstop
Financial services firms are unlikely to be additionally impacted if the ‘backstop arrangement’ is required.
Post Transition / Backstop
Post-transition or backstop arrangement, EU market access for UK firms in the financial services sector will be based on ‘equivalence’, which is more limited than under current arrangements. Under equivalence, market access is based on recognising each other’s regulations and can be withdrawn with 30 days’ notice. Currently, equivalence does not cover basic products and services such as bank lending. It remains unclear whether this will impact UK firm’s access to finance or other financial products and services.
