HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU. in general, the table provides an overview of the equivalence decisions for various jurisdictions worldwide, including Australia, Brazil, Canada, China, European Economic Area, Hong Kong, Japan, New Zealand, Singapore, South Africa, Taiwan, Thailand, and the United States. The table was initially published in November 2020 as an annex to the guidance/policy paper on the UK's equivalence framework for financial services. The guidance on the equivalence framework of UK explains how the UK intends to use equivalence framework as one of the key mechanisms to facilitate cross-border financial services transactions and market access.
The EU Withdrawal Act 2018 converted the applicable EU legislation into UK law and this legislation came into effect from the end of the transition period on December 31, 2020. The conversion of EU legislation includes nearly 40 equivalence and exemption provisions. The guidance document outlines the principles and processes that govern the equivalence framework of UK. In particular, the document highlights the commitment of UK to an outcomes-based model of equivalence, which operates in a transparent manner, providing predictability and stability over time to UK industry, overseas jurisdictions, and firms. In the equivalence framework of UK, the role of EC in making equivalence determinations for overseas jurisdictions has been replicated and transferred to HM Treasury. BoE, PRA, and FCA (collectively, the financial services regulators) are responsible for providing support to HM Treasury on matters relating to their regulatory functions. This includes the provision of information or advice to HM Treasury in connection with any consideration of equivalence or exemption determinations. Annex to the guidance on equivalence framework of UK also includes a table explaining the lead regulators for the decisions for each EU-retained legislation.
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Keywords: Europe, UK, Banking, Insurance, Securities, Equivalence Regime, Equivalence Decisions, Post-Brexit, HM Treasury
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