Member

Equivalence decisions are not just technical; they have political consequences. For example, the EU has extended its equivalence for UK central counterparties to 30 June 2028, but there are serious concerns that it may then begin to restrict that equivalence because the EU has built its own capacity in this sector and is in a position both to onshore major financial business and to strengthen the oversight of its own regulators. Can the Minister comment on the political aspects of equivalence? To me, this is one of the issues that raises the question of whether the regulator alone should be making equivalence decisions.