Market access: All eyes turn to equivalence question as Brexit deal is completed

Managers plea for clarity over passporting rights

The agreement of a Brexit deal was welcomed by financial markets in late December as sterling and UK equities strengthened in response, but the bare bones deal leaves UK asset managers in the lurch as their access to European markets remains in question.

Around 80% of the UK economy is unaffected by the deal, which primarily covers goods, with the UK financial services industry now subject to 'third-country' rules and unable to freely sell funds into the EU having lost so-called passporting rights. Partner and the head of London accountancy firm Blick Rothenberg's Brexit advisory group Alex Altmann explained that UK services are "heavily interlinked with the EU and the absence of provisions in the trade deal will mean restrictions" and "less EU market access for the UK's services industry". "Firms will also face additional barriers to...