Whether there is an FTA containing a financial services chapter with limited freedoms or not, the pivotal question remains the same: how will each side ensure that the other side’s firms are sufficiently regulated and supervised? That’s what the second negotiation guideline is all about.
Even limited cross-border freedoms would be only possible if, say, the EU supervisor could ensure that the UK firm is subject to high supervisory standards in the UK. Short of asking these firms to apply for a full local licence, this can be done through the equivalence approach to regulation.