UK Finance proposes binding UK-EU financial services deal

The news

UK Finance released its report on 9 June 2026, a decade after the Brexit referendum. The document calls for financial services to be placed on the agenda at the upcoming UK-EU Leaders’ Summit. It proposes a three-stage process that would conclude with a treaty modelled on the existing UK-Switzerland Berne Financial Services Agreement.

What's at stake

The UK’s financial services sector supports growth, investment and economic resilience for businesses and consumers across both the UK and the EU. The report stresses that the two economies remain highly connected yet their institutional relationship sits below its potential. UK Finance explicitly rules out any return to the EU Single Market, stating that both sides maintain separate regulatory frameworks and global commitments.

The proposed agreement would create a stable long-run framework for cooperation. A further long-term ambition is a Pan-European Capital Markets Union covering the UK, EU, European Economic Area and European Free Trade Association.

The case for

A formal treaty would deliver stable and predictable market access for UK financial firms. The report argues that both sides benefit from deeper cooperation on financial services and that placing the issue on the Leaders’ Summit agenda would strengthen the overall political reset between the UK and EU.

The case against

A legally binding agreement could limit the UK’s freedom to set its own financial rules. The report notes that the UK has its own regulatory framework and policy priorities, and any treaty would need to accommodate those independent choices alongside EU ambitions.

Why it matters now

If agreed, the treaty would provide the first structured post-Brexit framework for financial services since the Trade and Cooperation Agreement. If rejected, the current pattern of ad-hoc regulatory dialogue would continue without a binding foundation. The next political milestone is the upcoming Leaders’ Summit where UK Finance wants the issue formally raised.

Further reading

fintechfutures.com · credit-connect.co.uk

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