The key takeaways are that two sovereign regulatory jurisdictions will emerge, that free cross-border trade in financial services will be rather limited, and that the remaining options all require further analysis and thought. No matter which direction we take, our decisions will have an indirect, albeit substantial impact on other third countries to the EU. But how?
Let’s take a look at this second question of my talk. 5. Will Brexit alter relations with other third countries? And, naturally, I will focus on the US case. Brexit could affect two avenues which give financial firms access to the EU market: namely, decisions of supervisory equivalence, and the licensing process. Let’s take a look at each one in turn.