RegulationAug 19 2016

BBA pledges to fight on for full EU market access

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BBA pledges to fight on for full EU market access

The British Bankers’ Association has said it has not abandoned hope of the UK having full access to the EU market, but admitted a bespoke deal similar to Switzerland’s will be necessary.

Plans are currently being drawn up by representatives from the financial services sector which set out proposals for the UK’s access to the European financial market.

The BBA told FTAdviser a bespoke deal was important, and compared trade agreements which are currently in place with Switzerland.

A spokesman from the association said the BBA had not strayed from its campaign for the UK to have single-market access, adding this factor was “extremely important” when negotiating with the EU.

The body has been integral in helping put together a document, which lays out plans for Britain’s exit from the EU.

The chief executive of the association Anthony Browne said there needs to be a bilateral agreement which provides as much full market access as possible.

He pointed to Switzerland’s trade deals with the EU where certain sectors are given full two-way access through a ‘passporting’ regime.

“The banking sector unequivocally wants to maintain the current level of full access to the EU market to ensure businesses and customers across Europe can still be served by UK-based banks,” he said.

Full market ‘access’ to the single market, he said, is different from full ‘membership’ of the single market, because being a member of the European Economic Area brings a number of obligations, such as the requirement to adopt financial services regulations.

The BBA boss also said it is in the interest of both Europe and the UK to establish a deal which works, adding other EU countries will not want to be cut off from their main financial centre, particularly at a time when they are wanting to bolster economic growth.

katherine.denham@ft.com