Britain will have to stick with EU bank regulation after Brexit: lobbyist
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
A British flag and an EU flag are seen in front of a monitor displaying a graph of the Japanese yen's exchange rate against the U.S. dollar at a foreign exchange trading company in Tokyo, Japan, June 27, 2016. REUTERS/Toru Hanai
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
By John Geddie
FRANKFURT (Reuters) - Britain will have no choice but to stick with European Union banking laws when it leaves the bloc to avoid blowing a "huge hole" in its regulatory system, a financial industry lobbyist said on Thursday.
Graham Bishop, a pro-EU consultant and leading figure in a forum of financiers seeking to advise the British government in Brexit talks, said the country's reliance on EU regulation would prove a major problem when it decides to leave.
"On the minute after midnight on the day we leave the EU, the regulations don't apply. This would blow a huge hole in Britain's regulatory system," Bishop, who sits on the executive committee of the Financial Services Negotiation Forum, told an industry conference in Germany's banking hub Frankfurt.
"If all these regulations don't apply, the European Banking Authority's rules and their technical standards... most of them, not all, fall away."
Speaking to Reuters on the sidelines of the event, Bishop said the government would have to adopt European laws after Brexit because the sheer scale of the regulation meant it would take the government years to rewrite bespoke British laws.
"Then they have not taken control, so you are much worse off because now you are following (EU regulation) slavishly and you have no control over it," Bishop said.
Bishop said rewriting the laws could also jeopardize banks' "passporting" rights, which enable them to do business across the rest of the continent, if they were not viewed as equivalent with EU regulation.
Ratings firm Fitch said on Thursday that a worst-case withdrawal of passporting rights in isolation is unlikely to be a ratings changer for major UK banks and international banks with large operations in the UK.
(Reporting by John Geddie; Editing by Mark Trevelyan)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- US Senate passes bill to fund government through April
- Colombian gets prison in U.S. drug case involving Venezuelan military
- Brazil prosecutors say Lula acted for Saab to win jets order
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!