In response to the news that Brexit negotiations will move to Phase 2, Policy Chairman of the City of London Corporation Catherine McGuinness said:

“Christmas has come early for financial firms with the news that Brexit negotiations can now move to Phase 2.

“Government has made a bold but necessary step forward. But the hard work starts now.

“The UK’s future trading relationship with the EU will mark one of the most important pieces of legislation in a century – it is vital we get it right first time.

“An off-the-shelf trade deal, or one that is based on enhanced equivalence, simply won’t cut the mustard.

“Instead, the new trading relationship should be based on a free trade agreement, introducing a joint dispute resolution body and mechanisms for mutual market access. It would be based on regulatory alignment between the UK and EU with both parties working together to implement new global and international standards, replacing existing regulatory frameworks.

“It is essential that Government makes clear its aim to implement a transitional deal, clarifying exact timelines of when the transition phase will begin, what rules will apply to the UK in the interim and we need an indication of when the sector can expect to adopt the new rules.

“We remain committed to ensuring we can assist Government in any way possible as we move towards departure date.”

-ENDS-

Media contact:

Millie Allen | Financial Services Media Officer (Domestic)

City of London Corporation

millie.allen@cityoflondon.gov.uk

D: 0207 332 1388 M: 07710 860 886