It is time for regulated financial service providers to implement their Emergency Plans for Brexit, as the likelihood of a trade deal being reached by 31 December 2020 is diminishing. 17Thover things that are the same, British financial services companies will therefore lose access to the single market and so-called passport fees. This, of course, implies that there is no specific or tailored agreement to allow the UK financial services sector to remain in the domestic market. Both the May speech and the January 2017 White Paper raise hopes of sectoral agreements as part of a tailored agreement. And as we will see below, the rest of the EU has a certain interest in such a sectoral financial settlement. It is therefore not entirely out of the question that financial services established in the United Kingdom will remain in the internal market under a bespoke sectoral agreement. But at present (February 2017), such continuous access to the internal market and therefore passing appear as a long bet. In particular, continued membership of the banking and financial sector of the internal market would mean that Britain would accept EU laws and rules (financial and commercial) without the right to participate in their creation. Otherwise, Britain would still have a direct voice in the drafting of the EU`s financial settlement, even though it has left the EU. These possibilities seem politically highly unlikely and technically complex. But that`s also what alternatives do. “As with all free trade agreements, we will have regulations that will allow the EU to take any action for prudential reasons. The Hague Convention on the Choice of Judicial Agreements will enter into force in the UK on 1 April 2019, when there will be a “No Deal” Brexit.
As a result, all EU Member States are required to make the exclusive choice of judicial agreements in favour of english courts concluded after that date and to apply the resulting judgment. RANKIN Jennifer, “The EU negotiator wants a special agreement on access to the city after Brexit,” The Guardian, 13 January 2017, , [5 February 2017]. Tarrant, A., Holmes, P., Kelemen, R., D., “Equivalence, Mutual Recognition in Financial Services and the UK negotiating position,” Briefing Paper 27, January 2019, UK Trade Policy Observatory (UKTPO), University of Sussex, blogs.sussex.ac.uk/uktpo/publications/equivalence-in-financial-services/, 14 February 2019. 28 Conversely, the density of the UK-based financial services ecosystem, focusing on London, could complicate the relocation of operations to other parts of Europe. Of course, many European financial centres are looking for stores that may leave London. The favourite places that should benefit from Brexit are Dublin (which shares English and common law with London) and Frankfurt (home of the European Central Bank and perhaps a logical site for the European Banking Authority, after which it leaves London). Paris is also in the running: at the beginning of November 2016, Valérie Pécresse announced that the Ile-de-France region would create a one-stop shop for businesses to help companies relocate to France25 The Paris metropolitan area also has the advantage of being the only metropolis in Europe, and therefore an unprecedented business centre within the EU.