Brexit and EU Financial Regulation
Brexit will have far-reaching implications for financial integration and regulation in the European Union (EU), as well as for the financial sector in the United Kingdom (UK). This chapter outlines the configuration of the financial sector in the UK and its interconnections to the EU. It briefly discusses the positions of the UK-based financial industry in the Brexit debate. The chapter also discusses the influence of the UK in the development of the single financial market and its regulation. It focuses on the UK and the external dimensions of the Single Market in finance, including relations with third countries and international standard-setting bodies. The most disruptive outcome for the financial sector, especially for the activities based in the UK, would be a no-Brexit deal. Hence, the new relations between the UK and the EU would be regulated by the rules set by the World Trade Organization, albeit this possibility has receded, after the agreement of December 2017.