Mairead McGuinness

Photographer: Lukasz Kobus/European Commission

The nominee for the European Union’s top financial oversight job warned the U.K. to expect “consequences” after Brexit if London decides to split with the bloc on how it regulates the industry.

Mairead McGuinness told members of the European Parliament in Brussels that there will be “significant changes” for the finance sector. The EU is preparing for the fallout if it decides against granting any further cross-border access to London-based banks and trading venues, McGuinness said.

“There will be a very different relationship compared to the current situation in terms of market access, the regulatory framework and supervisory oversight,” McGuinness said in a written reply to questions from parliament. The Irishwoman, who was picked to become a member of the European Commission by President Ursula von der Leyen, faces a hearing in the assembly on Oct. 2.

If she wins the parliament’s support, she’ll take over the post at a critical moment in the U.K.’s departure from the EU. The two sides are trying to unblock trade talks amid rising tensions, and officials in Brussels are weighing what kind of access they should grant to the U.K.’s financial industry after the end of the post-Brexit transition period this year.

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The EU is relying on the so-called equivalence process, where it unilaterally decides whether rules abroad are tough enough to allow a jurisdiction’s companies to do business with customers in the EU. It’s currently assessing the U.K.’s framework in a number of areas, including investment banking.

“The U.K. begins from a position of close convergence, but has clearly stated its general intention to diverge from EU rules,” McGuinness said. “While the U.K. is of course entitled to diverge after

(Bloomberg) — Britain faces a surge in insolvencies unless the government extends measures designed to shield firms struggling amid the coronavirus crisis, a business lobby warned Wednesday.



a man wearing a suit and tie: Rishi Sunak, U.K. chancellor of the exchequer, departs number 11 Downing Street on his way to present his 'Winter Economy Plan' at Parliament in London, U.K., on Thursday, Sept. 24, 2020. Sunak will set out a new crisis plan to protect jobs and rescue businesses as the coronavirus outbreak forces the U.K. to return to emergency measures.


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Rishi Sunak, U.K. chancellor of the exchequer, departs number 11 Downing Street on his way to present his ‘Winter Economy Plan’ at Parliament in London, U.K., on Thursday, Sept. 24, 2020. Sunak will set out a new crisis plan to protect jobs and rescue businesses as the coronavirus outbreak forces the U.K. to return to emergency measures.

The Institute of Directors made its plea on the day that the suspension of wrongful trading rules is due to come to an end. It means directors of companies facing certain liquidation will be committing an offense if they continue to operate, including paying staff and suppliers.

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“The suspension of these rules has given business leaders greater confidence to press on and seek a way through the uncertainty for their organization and staff,” said Roger Barker, director of policy at the IoD. “Now, the message to businesses against the wall appears to simply be to shut up shop.”

The warning highlights the pressure on Chancellor of the Exchequer Rishi Sunak as Britain enters a difficult winter.

Local lockdowns are being reimposed in response to a surge in coranavirus cases; trade talks with the European Union are deadlocked; and critics say his wage-subsidy replacement announced last week will do little to prevent mass job losses in the coming months, with the ax falling hardest on young people.

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Two separate reports Tuesday demonstrated the strains in the labor market.

The Recruitment and Employment Confederation found private-sector confidence subdued and many firms reducing pay. But there were some glimmers of hope, with short-term demand for permanent staff