Number 10 Confirms negotiations with Brussels on financial services will take place this week.
The negotiations are said to be starting now due to the complexity of the task at hand. The two sides are said to be working towards a “memorandum of understanding” by the end of March.
A spokesperson for the Prime Minister said: “We want to preserve financial stability, market integrity, and the protection of investors and consumers.
“We did push for a broad agreement on financial services as part of the negotiations and the Treasury will continue that work with the commission beginning this week.
“The joint declaration was clear, we are aiming to agree a memorandum of understanding by March.”
With the UK being tied to the EU under the level playing field provision in the treaty, the talks will seek similar regulations going forward for both side to continue to do business on financial services.
Lord Frost and Michel Barnier are not likely to head up these negotiations. The UK is still waiting for the EU to reciprocate after the UK granted EU businesses a level playing field on 17 different areas.
A trade expert close to the government said: “The EU’s decision will inevitably be influenced by its political desire to ensure more financial activity and build an integrated European capital market on the continent.
“It is unlikely that it will grant UK-based firms across the board access, and instead will only grant equivalence in the areas deemed to be of ‘systemic importance’ to the EU’s financial markets.”
The UK chancellor Rishi Sunak said: “If you look at the history of the City stretching even further back than that, it has always constantly innovated, adapted and evolved to changing circumstances and thrived and prospered as a result.
“And I think it will continue to do that.”