Pimfa backs Brexit deal

Pimfa backs Brexit deal

The financial adviser trade body has welcomed Theresa May's Brexit deal and called for talks on regulatory cooperation to start soon.

On Sunday the leaders of the 27 European Union member states endorsed the Brexit withdrawal agreement and approved the political declaration on future relations between the UK and the EU.

But the deal has proven controversial and several members of the Conservative Party have called for Mrs May to stand down as Prime Minister, with some claiming it gives the EU too much power over the UK and others saying the opposite.

John Barrass, deputy chief executive of the Personal Investment Management & Financial Advice Association (Pimfa), said: "This is a step in the right direction and it paves the way for the UK’s orderly exit from the EU on March 29, 2019.

"If adopted by UK Parliament, the deal will deliver a much needed transition period which is important for Pimfa members and which we have consistently argued for.

"As for the future relationship between UK and EU, there is a lot of work to be done to achieve the sound foundation for future EU-UK cooperation in the financial services sector.

"While it is unclear whether any potential changes to the existing equivalence regime will include provisions for retail, it is critical that the negotiations on future regulatory cooperation start as soon as the UK leaves the EU."

In the political declaration on their future relationship, the UK and EU have agreed to engage in "close and structured cooperation" on the regulation of financial services.