European Union Committee
Brexit: financial services

9th Report of Session 2016-17 - published 15 December 2016 - HL Paper 81



Chapter 1: Introduction

Financial services and the UK economy

The EU Committee’s work

Chapter 2: Passporting, equivalence and market access

Possible trade agreements: existing models

Box 1: The EEA, or ‘Norway’ model

Box 2: The customs union

Box 3: A free trade agreement

Box 4: EFTA membership and bilateral agreements ‘The Swiss model’

Box 5: WTO terms

Passporting and equivalence

The legislative framework

Box 6: EU Legislation granting passporting rights

The extent of passporting in the UK

Table 1: Number of inbound and outbound passports issued by
the Financial Conduct Authority and Prudential Regulation Authority

Table 2: Number of firms with at least one passport under each directive

Table 3: Sectoral breakdown of UK financial services revenues
2015, segmented by source of revenue

The impact of passporting

Conclusions and recommendations

Chapter 3: The impact of the loss of passporting

The ‘ecosystem’

Third-country equivalence

Euro clearing

Chart 1: Average daily turnover by notional value of global
OTC derivatives in April 2013 - interest rate derivatives, in USD

Chart 2: Average daily turnover by notional value of global
OTC derivatives in April 2013 - FX derivatives, in USD

Chart 3: Top five euro-denominated OTC foreign exchange
markets trading in euros, daily turnover in April 2013 in EUR

Chart 4: Top five OTC interest rate derivatives markets trading
in euros, daily turnover in April 2013, in EUR

Chapter 4: Beyond market access—free movement and FinTech

Free movement and recruitment


Attracting and retaining talent


London as a FinTech hub

Chapter 5: The way forward

A bespoke arrangement?

Planning and transition

Transitional arrangements

The role of the Government

EU reliance on UK financial services

Summary of conclusions and recommendations

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Passporting and third country access for financial services

Appendix 4: Global Financial Centres Index 20: Top 30 cities

Appendix 5: Examples of FinTech services

Appendix 6: Glossary

Evidence is published online at and available for inspection at the Parliamentary Archives
(020 7129 3074).

Q in footnotes refers to a question in oral evidence.

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