Passporting will seemingly continue until 31st December 2020, and presumably a revised UK Implementation Act will provide that EU laws becoming applicable before then (such as the Prospectus Regulation) will be adopted in the UK. News reports on an unpublished annex to the EU27’s “guidelines” on negotiating Brexit say that the EU27 wants equivalence but not mutual recognition for the financial services sector. This is unsurprising since the EU27 is concerned that the UK’s post-Brexit regulation could become competitively nimbler than the EU’s dirigiste model – Singapore not Brussels. To illustrate the point, Sabine Lautenschlager of the ECB noted on Thursday on Thursday: “In 2014, banking supervision was transferred from national to European level. And since then, we’ve achieved a lot. However, we could do more, and that brings me to regulation… regulation in Europe remains fragmented to a degree that makes it hard to reap the full benefits of European banking supervision… Large investment firms and third-country branches are still not covered by it. This situation should be changed to restrict regulatory and supervisory arbitrage…” This is ironic given the number of times the UK has gold-plated EU directives. At an AFME conference on Wednesday, Kay Swinburne MEP explained that the UK proposal would involve “forming a new regulatory forum as envisaged by then-Commissioner Barnier [who drafted the financial services chapter of the defunct TTIP, which would have included financial services] in which future regulatory actions can be discussed” and an arbitration system so that disagreements in policy can be explored in a technical process. This February 2017 paper explains the EC’s approach to equivalence and lists the equivalence determinations made to date.