On 31 January 2020, the UK left the EU.
Now that the UK has left, it is no longer directly covered by the EU’s regulatory framework for financial services, which allowed a substantial number of EU27-based consumers to access financial services products in the UK, and vice versa.
The “Trade and Cooperation Agreement” (TCA) outlining the EU-UK post-Brexit relationship does not include a comprehensive chapter on financial services. Both parties agree to make their “best endeavours” to uphold international regulatory standards for regulation and supervision, in the fight against money laundering and terrorist financing, and to combat tax evasion and avoidance. In relation to insurance, specific reference is made to the Insurance Core Principles (ICPs) by the International Association of Insurance Supervisors (IAIS).
Both parties also agree to work on a broader Memorandum of Understanding (MoU) on financial services. On 26 March 2021, the UK and the EU reached an agreement on the text creating a joint UK-EU Financial Regulatory Forum as the platform to discuss “financial services issues” in the future.