LONDON, March 23 (Reuters) - The European Union’s system for granting market access to banks outside the bloc will not work for a financial centre the size of Britain after Brexit, a top European regulator said on Thursday.
Gerard Rameix, chairman of France’s AMF markets watchdog, said the “equivalence” regime - whereby Brussels grants access to firms from non-EU countries with similar rules - must be adapted specifically for Britain.
The equivalence regime “won’t be appropriate” for the UK as it will become a “very particular third country”, Rameix said in a speech at Chatham House in London.
The EU’s equivalence regime “must be carefully reassessed. This would require a more granular assessment of equivalence” compared with the current system based on outcomes, he said.
The bloc must also be able to supervise the clearing of euro-denominated transactions, Rameix said. Such clearing is currently largely based in London. (Reporting by Huw Jones; Editing by Alexander Smith)