Brexit No Excuse For Regulatory Arbitrage, Says EBA

The EU’s top financial watchdog has told national authorities not to encourage a regulatory “race to the bottom” by relaxing authorisation or supervision standards ahead of Brexit.

The European Banking Authority (EBA) made the comments in a non-binding opinion on how authorities and financial firms should approach the “unprecedented situation” of the UK’s impending departure from the EU.

It acknowledged that many UK-based businesses are already considering establishing a presence in another member state, but said national authorities should not view the situation as an opportunity to ease licensing demands.

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