Brexit regulatory equivalence is “pragmatic solution” says EU financial services boss

Regulatory equivalence between the UK and the EU after credit is a “pragmatic solution” which could work after Brexit, according to the EU’s top financial services boss.

EU financial services commissioner Valdis Dombrovskis said that while “equivalence is not perfect” but that it offered a way forward.

“We should not let perfect be the enemy of good,” he said, speaking this morning in London’s Guildhall at the City Week conference.

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Equivalence is already used by financial services in multiple large economies, including the US. However, it is considered by many City firms to be less favourable than the current trading relationship, with passporting allowed by UK firms within the EU’s Single Market.

“It’s not ideal,” said Dombrovskis. “It has its shortcomings but this is a possible way forward.”

Managing the “risks and uncertainties” of Brexit is the European Commission’s “number one priority” during negotiations, he said.

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