The Government has outlined plans for post Brexit financial services regulation in the UK to ultimately diverge from the European Union.
Brexit secretary David Davis met with City leaders last week at Chevening, foreign secretary Boris Johnson’s country residence, the Financial Times reports.
Davis told a breakout session for financial services that the UK would lose potential competitive gains from leaving the EU, if it maintained the same regulatory framework without any influence over its composition.
However, Davis is reportedly no longer opposing a two to three-year transition period where the UK’s relationship with the EU would be broadly maintained.
LGIM head of personal investing Helena Morrissey was among the attendees alongside London Stock Exchange chief executive Xavier Rolet, hedge fund manager Sir Paul Marshall, and banking chiefs.
Former European commissioner Jonathan Hill, who has been informally advising Davis, supported the Brexit secretary’s view that the UK would lose out by being tied to EU regulation after the transition period.
There were views on whether Hill’s approach was accepted by attendees with some concerned that the Government was seeking a “race to the bottom” by abandoning equivalent standards.