Updating its policy on market access for foreign banks, insurers and investment firms, the European Union’s executive European Commission said countries outside the bloc did not necessarily have market access even if their rules were equivalent.
Faced with a huge financial center on its doorstep that would be outside the bloc after Brexit, Brussels has begun tightening up equivalence conditions.
Britain has said UK rules will be identical on Day One of Brexit but this does not give a guarantee of access.
“It should be noted that equivalence empowerments do not confer a right on third countries… to receive an equivalence determination, even if those third countries are able to demonstrate that their framework fulfills the relevant criteria,” the Commission’s policy paper said.
The paper said requests for equivalence from “high impact” third countries would in future require more detailed and granular assessments.