The future of financial regulation: who should pay for the failure of American and European banks?

2016 ◽  
Vol 53 (12) ◽  
pp. 53-5322-53-5322
Keyword(s):  
Financial Regulation ◽  
The Future ◽  
European Banks

Brexit and the Future UK–EU Relationship

2020 ◽  
pp. 150-178
Author(s):  
Scott James ◽  
Lucia Quaglia
Keyword(s):  
Political Economy ◽  
Financial Services ◽  
Financial Regulation ◽  
Mutual Recognition ◽  
Trade Agreements ◽  
Single Market ◽  
Elected Officials ◽  
The Future ◽  
City Of London ◽  
The City

This chapter uses the domestic political economy framework to consider the implications of Brexit for UK financial regulation. It outlines the likely future UK–EU relationship by analysing the preferences, role, and influence of key domestic groups on Brexit, and by assessing the EU’s framework for managing relations with third countries. We argue that elected officials pursued a ‘hard’ Brexit position in response to parliamentary constraints and pressure from financial regulators to avoid becoming rule-takers. The City of London authorities pushed strongly for a bespoke deal based on mutual recognition, although this masked significant intra-industry divisions. The EU’s insistence that the future relationship be based on the existing third-country regime reflected a desire to defend the single market, but also Franco-German incentives to compete for post-Brexit business. However, the coverage of third-country equivalence rules in finance, and the inclusion of financial services in trade agreements, remains limited.

Introduction

2020 ◽  
pp. 1-17
Author(s):  
Scott James ◽  
Lucia Quaglia
Keyword(s):  
Financial Regulation ◽  
Single Market ◽  
Preliminary Assessment ◽  
The Future ◽  
Multi Level ◽  
The Uk ◽  
The Impact ◽  
The Eu ◽  
Regulatory Reforms

This chapter outlines the theoretical and empirical puzzles that inform the book, its objectives, overall argument, and structure. It sets out to explain the changing preferences and influence of the UK in shaping multi-level financial regulation. In particular, the book addresses two empirical questions. Why has the UK favoured increasingly stringent regulation in certain financial sectors since the crisis, but not in others? Why has the UK led international and EU-level regulatory reforms in some areas, but has resisted these initiatives in other areas? The chapter also outlines the book’s ambition to undertake a preliminary assessment of the impact of Brexit on the future of UK financial regulation, focused on two questions. Why has the UK decided to withdraw from the EU single market in services, including finance? How is Brexit likely to impact on the UK’s regulatory preferences and ability to shape multi-level financial regulation?

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