EU Says Passporting a Legal Consequence of Brexit

Commissioner Michel Barnier stated that Brexit will result in UK banks losing EU passporting rights, a key aspect of the single market. Banks have been preparing for this by setting up offices in Frankfurt. The UK aims for a comprehensive trade agreement including financial services. The discussion highlights the need to adjust Brexit terminology, considering options like equivalence and mutual recognition, which are less stable than full market access.

What is the primary consequence of Brexit for UK banks as discussed in the video?

• Increasing financial services

• Gaining new trade agreements

• Expanding into new markets

• Losing EU passporting rights

Why have banks been leasing offices in Frankfurt?

• To comply with new EU regulations

• To reduce operational costs

• To prepare for the loss of EU passporting rights

• To expand their operations in Germany

What does the UK government hope to achieve with a new trade agreement?

• An agreement focused on agriculture

• A simple trade agreement with limited scope

• The most ambitious trade agreement ever signed

• A deal excluding financial services

What is one of the challenges associated with the equivalence option?

• It requires approval from all EU countries

• It can be easily revoked by one side

• It is too complex to implement

• It is more expensive than passporting

What is mutual recognition in the context of financial services?

• A temporary solution until passporting is restored

• A system where both parties recognize each other's standards

• A method to bypass EU regulations

• A unilateral agreement by the UK