US banks lobby for advantage following Brexit rule.
US investment banks are lobbying the UK to be granted a rule change that would make it easier for them to operate from London. The coalition of financial firms has been on the minds of the Treasury so that they can provide services to European Union clients after Brexit. London-based firms would be able to serve European customers, from London, under EU regulations. This has angered some British banks, as they have a lot at stake.
US investment banks claim these measures are common in free trade agreements covering financial services. The Treasury spoke up stating the UK is “seeking a unique and ambitious economic partnership” with the EU and that details must be negotiated. The existing UK “overseas persons exemption” provision is in danger. This currently enables non-EU banks to carry out certain financial activities in the UK without a license from the country.
US banks want the exemption to be included with the EU before Brexit. Banks would remain with their current business models. This would fill a gap that is not currently covered under EU law. US investment bank acknowledged that it is ambitious and it’s not going to be easy to attain. The lobby, which will be issued later this week, has more than 100 pages containing broad proposals.
Source: Financial News