Funds Congress backs mutual regulatory recognition post-Brexit

'Mutually beneficial solution'

The UK and the European Union (EU) must pursue a policy of mutual regulatory recognition (MRR) in financial services post-Brexit or risk damaging the sector on both sides of the channel, industry experts have said.

MRR, which was first proposed by the International Regulatory Strategy Group, would ensure the quality of regulation and supervision is comparable across the EU and UK post Brexit. FCA's Bailey urges cooperative action on Brexit risks Under such an arrangement, regulatory priorities would be near identical and there would be a mechanism in place to manage ongoing alignment or divergence over time. Speaking at Funds Congress 2018, hosted by Dechert, PwC and Carne, CEO of TheCityUK Miles Celic said the current system of "passporting", whereby UK asset managers can easily access Europ...