Reflections on EU Financial Regulation After Brexit
This article provides a brief overview of the efforts taken in the regulatory and supervisory sphere in the first post-Brexit phase and highlights the challenges ahead. Brexit has created a new landscape for financial institutions in Europe. Banks, regulatory authorities and supervisors worked intensely to ensure a transition without any significant distortions. Brexit has caused structural changes for credit institutions as they adjusted their operations to serve the EU market. Brexit has also brought to surface the EU dependencies on the UK financial sector, especially in the area of derivatives clearing, that will need to be addressed in the near future. Going forward, the EU and the UK should continue to show their strong commitments to preserving open financial markets and global regulatory standards in the financial sector. Those principles should help build a collaboration framework to avoid weakening financial standards, risk fragmentation or financial disruption.