If Brexit eventually leads to UK departure from the EU Single Market and a regime of
equivalence applying to fnancial regulation, the UK financial industry will face long-term challenges and fnancial stability will be threatened. The only way to mitigate such challenges is close regulatory alignment with EU rules post-Brexit. Critically discuss.
You may also find it useful to review the chapter through the following questions:
• What are the different types of relationship that the UK may have with the EU post-
Brexit and how do these impact banks and financial markets?
• Explain the concept of equivalence in EU financial legislation and especially under
MiFID II.
• Does equivalence provide a satisfactory basis for the future relationship between the
UK and EU financial sectors?
• How will Brexit affect branches of UK banks be established in other EU Member
States?
• What is the likely impact of Brexit on the resolution of cross-border financial institutions?
