EU backs down on post-Brexit money manager rules

A compromise has been struck between European Union member states over the way money managers will be supervised once the UK quits the bloc.

The EU wanted to avoid a situation where national regulators were able to offer incentives to London-based financial firms post Brexit. It therefore proposed stripping national regulators of powers to offer tailored arrangements to foreign firms.

Smaller countries, including Ireland, Luxembourg and several Easter European states, where unhappy with the proposed reform, however, claiming it would leave them at a disadvantage.

But according to Reuters, a compromise has now been struck following a meeting of EU finance ministers in Brussels on Tuesday, and legislators will now seek to finalise details. The aim is for the reform to become law before the next EU elections in May.

Financial services commissioner Valdis Dombrovskis told Reuters that the compromise “does not match the high level of ambition” of the initial wider reform, but he was happy to move forward.