Trade minister Mark Garnier believes the UK is likely to lose passporting rights in the Brexit negotiations, but argued the Government could negotiate a “special hybrid” that is better than equivalence.
Speaking to Bloomberg, Garner said: “What we are not trying to do is fit into an existing box. We are trying to create a new model.”
Garnier, who is also Government envoy for financial services, admits equivalence would be viewed with suspicion by the City because access can be withdrawn at 30 days’ notice.
He says: “If we can create a special hybrid version of that, with a better version of equivalence or a different version of passporting, then that’s what we will try to achieve.”
Garnier admits this would mean the UK was likely to have to adopt EU financial regulation.