The European Union (EU) opened the way for cooperation with the United Kingdom on financial services regulation, adopting a protocol that was expected post-Brexit but blocked due to tensions over Northern Ireland.
The European Commission, the executive arm of the European Union, announced at the conference that it had adopted a draft memorandum that outlines a framework for cooperation in this section.
The United Kingdom and the European Union defined a memorandum of understanding in March 2021 but it was never signed as relations deteriorated rapidly due to reform of trade rules for Northern Ireland.
In late February this year, the issue was resolved after intense negotiations, in an agreement known as the “Windsor Framework”.
To take forward cooperation on financial services regulation, the Commission initiated the adoption of a draft protocol, which still needs to be ratified by the 27 countries that make up the EU.
The understanding will include a joint EU-UK Financial Regulatory Forum, where regulators from both sides will be able to discuss issues relating to financial services.
Irish Mairead McGuinness, the European Commissioner for Financial Services, said in a statement that “the Windsor Framework allows the EU and the United Kingdom to open a new chapter in our partnership based on a spirit of mutual trust and co-operation.”
“I am confident that our relationship and future partnership in financial services will be based on a shared commitment to upholding financial stability, market integrity and consumer and investor protection,” he added.