What the EU offers the city – and how it compares with other countries Business

So how does this cold shoulder for the UK compare to Brussels’ treatment of other countries?

Andrew Bailey, Governor of the Bank of England, believes other countries have been allowed much more flexibility, although the UK’s rules are roughly the same as the EU’s, warning that only of small changes to the rules could cut UK businesses.

“It would be reasonable to think that a common framework of global standards combined with the common basis of rules – since the UK transposed EU rules from the start – would suffice to base equivalence on global standards” , did he declare.

“Less than that was enough when Canada, the United States, Australia, Hong Kong and Brazil were all considered equivalent.”

Sections of US rules on the capitalization of insurance companies, regulations on stock and derivative transactions, investment firm operations and audit requirements are deemed equivalent by Brussels, which allows EU-based institutions to do business across the Atlantic.

This means that EU stocks can be traded on US stock exchanges, although the same courtesy is not extended to UK markets.

That doesn’t mean it’s always easy, however.

European investors were suddenly barred from trading directly on Swiss stock exchanges when Brussels revoked its equivalency status in 2019, for example – a step that can be taken with just 30 days’ notice, making it a fragile system. .