The Economist
There was a time when a mention of MiFID 2, a complex European regulation, elicited groans from financial types in the City of London. Since Britain voted to leave the European Union, however, it has become a source of hope.
A post-Brexit Britain would start with identical rules, but even a small divergence—a decision, say, to repeal Europe’s caps on bankers’ bonuses—could be construed as an unacceptable step in the wrong direction. In any case, argues Philippe Morel of BCG, it is unrealistic to expect that any decision on equivalence could be divorced from the wider, potentially acrimonious exit negotiations, in which it is bound to be used as a bargaining chip.
