Shearman: ESMA’s Post-Brexit Regime for UK Investment Firms – “Equivalence” or Direct Regulation?

The European Union’s financial regulatory regime for third-country access in many sectors relies on a framework of “equivalence,” whereby institutions based in approved non-EU countries with similar standards may have varying degrees of access to EU markets or investors, depending on the extent to which their laws and regulations achieve equivalent outcomes to those of EU law. The EU’s equivalence regimes have been given increased prominence as a result of Brexit, since they are the means by which the EU’s formerly largest financial centre, in London, would access EU investors and vice versa.

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AUTHORS:
Barnabas Reynolds, Thomas Donegan, and Sandy Collins

Compliments of Shearman & Sterling LLP – a member of the EACCNY