UK regulators have said Brexit gives Britain an opportunity to ditch the EU rules, and to focus on principles that can accommodate market changes more easily. Robert Ophele, chairman of France’s markets watchdog AMF, claimed the EU should also use Brexit as a time for change and argued the quality of rule-making needs to be looked at as reviews of existing laws come up. Speaking at the annual IDX derivatives industry conference in London last week, he said: “The time is ripe to think about the main areas of work and principles that should guide the action of EU legislators and regulators for the coming years. We should obviously be more pragmatic both in regulation and supervision.”
Mr Ophele said rules must be tightened to help stop lenders from basing themselves in countries with laxer supervision.
The EU has already begun tightening EU laws that set conditions for foreign firms in readiness for Britain departing the bloc.
But Mr Ophele also singled out national rules that give member states discretion over how they treat foreign firms when there is no EU law in place for a given activity, such as private placements.
He added: “These national specificities should be reviewed.”
Closer cooperation among national regulators in the EU would stop “jurisdiction shopping”, or firms basing themselves in countries that enforce rules less robustly, he said.
There should also be a redesign of rules for investment funds, particularly when they are being managed from outside the bloc, Mr Ophele said.
Meanwhile, in a major Brexit win, it was revealed today that Britain and South Korea have agreed in principle a free trade deal.
International Trade Secretary Liam Fox confirmed the news today, which will allow businesses to continue trading freely after Britain’s exit from the European Union on October 31.
Mr Fox was in Seoul this morning to sign the principle free trade agreement (FTA) with Korean Minister of Trade Yoo Myung-Hee.
The deal would help South Korea minimise trade uncertainty and maintain trade with Britain based on Seoul’s existing free trade agreement with the EU, the Ministry of Trade, Industry and Energy for South Korea said in a statement.
It includes keeping zero tariffs on South Korean exports such as auto parts and automobiles.
South Korea will now seek formal approval from its parliament to ratify the trade pact before the Brexit deadline.
After signing the document, Mr Fox tweeted: “This means that whatever happens with #Brexit, there will be total continuity in trade between our two countries AND the basis for an ambitious future FTA when we leave the EU.
He continued: “The value of trade between the UK and Korea has more than doubled since the EU-Korea agreement was applied in 2011.
“Providing continuity in our trading relationship will allow businesses in the UK and Korea to keep trading without any additional barriers, which will help us further increase trade in the years ahead.
“As we face growing global economic headwinds, our strong trading relationship will be crucial in driving economic growth and supporting jobs throughout the UK and Korea.”