Faculty of Humanities and Social Sciences

The impact of Brexit on the City of London and UK financial services

Monday, 26 March 2018

The impact of Brexit on the City of London and UK financial services

An article written by the Reader in Commercial Law at Oxford Brookes University School of Law has been cited by the European Parliament’s Constitutional Division as recommended reading for members of the body.

Dr Scott Morrison published an article in January 2018 in International Company and Commercial Law Review entitled ‘Third-country equivalence: a Brexit scenario for UK financial services.’ It analyses ways forward for British financial institutions post-Brexit.

The European Parliament recommended the article to its members in preparation for the plenary debate ‘Guidelines on the framework of future EU-UK relations’  held in Strasbourg on 13 March 2018. The Parliament's Constitutional Affairs Division highlighted the originality, constitutional importance and scholarly character of the article.

Dr Scott Morrison commented: “Once the UK leaves the EU, it will be considered a 'third country’, like any other non-EU country such as the US or Japan. Currently third countries can and have successfully applied to find their regulatory regimes 'equivalent' to those of the EU. Therefore they are entitled to offer those financial services inside the EU without further regulatory or compliance checks. This article considers whether UK-based financial institutions will be able to continue offering services in the EU post-Brexit. In particular it analyses the advantages and disadvantages entailed by third-country equivalence.”

‘Third-country equivalence: a Brexit scenario for UK financial services’ was published in the International Company and Commercial Law Review, Volume 29, Issue 1, 2018. Further information and Scott’s research and recent publications can be found on his staff page.

Image: The pro-EU march from Hyde Park to Westminster in London on March 25, 2017, to mark 60 years since the EU's founding agreement, the Treaty of Rome. Credit: Ilovetheeu