City will keep EU access if rules aligned, commission official says

The City will retain access to European markets if UK regulations are similar to the EU’s, a top European commission official has said.

Valdis Dombrovskis, the commission’s vice-president, said UK banks would probably be able to use a system of equivalence to trade with the EU, the Times reported. Dombrovskis also said Brussels would decide whether UK regulations were strong enough.

In a speech in London, Dombrovskis advised financial companies to keep planning for a hard Brexit and to “prepare for all scenarios”.

The UK wants a bespoke deal for the City after Brexit based on mutual acceptance of each other’s regulations. Dombrovskis said under equivalence arrangements the UK would have to remain closely aligned to the EU or “equivalence would fall”, the Times said.