31This is the challenge of Brexit to Europe for a long time. If we leave aside the temporary measures taken to preserve financial stability in the face of Brexit or if we look beyond the transition period if an agreement is reached, the cost of financing will certainly increase throughout the European Union, because automatic passing is lost. These costs, in the form of less easy access to capital, higher interest rates, higher fees, etc., will be borne in all areas. There may also be regulatory consequences, as UK financial expertise is lost (at least in part) in regulatory development throughout the European Union. A recent article by Bob Diamond, the controversial former CEO of Barclays, recalls, for example, how, when he worked for Morgan Stanley in the early 1990s, he was part of the team that imposed the Bank of England`s first European bond issue. This is one of the innovations that has opened up capital markets to the financing of government and then commercial activities. Brexit could weaken financial innovation and regulation in the rest of the EU. From 31 December 2020 (when the Brexit transition period ends), the UK will be treated like any other „third country“ if there is no Brexit trade deal for financial services, no concessions and no equivalence. This briefing nullifies the main effects. It is based on the situation provided for in the current British IS, which are prepared for such an emergency without agreement. Article 19 of the Royal Order covers all measures taken in the area of financial services.

This article is aimed at financial companies in the United Kingdom and Gibraltar that currently operate in Spain and contains three main provisions: 1 October 2020: In collaboration with the Bank of England, we have published a website on Temporary Transitional Power (TTP) that provides businesses and financial infrastructures with information on the Bank`s and PRA`s approach to the TTP. At the same time, we have also issued general guidance on the Bank`s and THE PRA`s transitional instructions. Brunsden, J. and Binham, C., „UK and EU financial regulators to examine hard Brexit impact,“ The Financial Times, 27 April 2018. 33This is not bad news. The British economy has long been distorted by the considerable importance of financial services and the London area. A more balanced distribution of financial services among other European cities may have the advantage of not distorting national economic structures. Similarly, excessive growth in financing in the United Kingdom and, more generally, in the global economy is a mixed advantage. Finance is widely described as better at attracting wealth from other sectors and business populations instead of creating new wealth and, as a result, harming large-scale growth.31 A more fragmented and less powerful financial sector in the European Union could bring some benefits in terms of income and wealth equality. We have also made a series of communications to businesses on leaving the EU. These are covered in the list below. 8This the clock is ticking on Brexit, it seems likely that preparations will be made on both sides of the Channel and, more broadly, within the World Community of the Central Bank, to ensure financial stability in the event of a crash.

Of course, this cannot provide safeguards against unforeseen events, but at least major identifiable threats should be addressed. 37. The parties agree that close and structured regulatory and supervisory cooperation is in their mutual interest. This cooperation should be based on economic partnership and based on the principles of regulatory autonomy, transparency and stability.