EU THREATENS TO CUT OFF ACCESS DEAL FOR CITY OF LONDON

The EU's chief Brexit negotiator Michael Barnier told Chancellor Sajid Javid yesterday that there will be no ?general, global, permanent equivalence? with the UK on financial services after the Brexit transition ends reports Reuters (online only). Speaking in the European Parliament in Strasbourg, Mr Barnier said that the EU alone would decide whether to grant or withdraw equivalences, and that access could be withdrawn at short notice, in as little as 30 days.

Meanwhile, the Bank of England's deputy governor for financial stability Sir John Cunliffe stressed to an audience in Berlin yesterday that there may well be divergence, arguing that the ?UK cannot outsource regulation and supervision of the world's leading complex financial system to another jurisdiction? says  The Telegraph (£, Business, p1). Separately, speaking to the House of Lords Economics Affairs committee, the Bank of England governor Mr Carney said the UK wants a stable equivalence regime which would involve a sequenced off-boarding process if the rules diverge too much, reports The Times (£, Business, p42).

SOCIAL MEDIA SITES RISK FINES FOR FAILING TO MEET DUTY OF CARE LAWS

The Culture Secretary Baroness Morgan will tell the House of Lords today that social media sites could be blocked from the UK if they breach proposed new duty of care laws, according to  The Telegraph (£, p11). Ministers will say that Ofcom should be the regulator, and that it will have the powers to draw up legally enforceable codes of practice that will inform what companies must do to protect users from online harms. The new regulator is also expected to be able to fine tech giants and block websites or apps which commit 'serious, repeated and egregious violations? of their duty of care.

The plans, set out in an initial government response to an Online Harms White Paper, highlight that search engines could be barred from carrying links to companies breaking the law, reports The Times (£, p4). The system will be modelled on the finance industry, with the government expected to make named officers of social media firms personally responsible for breaches of the law, with The Telegraph (£, Business p4) referencing our SMCR report

NEWS IN BRIEF

The UK economy flatlined in the final quarter of 2019, with growth at 0.3 per cent in December, and 1.4 per cent in 2019 as a whole, according to the Office for National Statistics (ONS) (City AM, p3).

According to a new report by the World Wide Fund (WWF), Britain's economy will potentially be the hardest hit in Europe by climate change, as coastal erosion and flooding could cost the economy £16 billion by 2050 (The Telegraph, £, p14).

The British government has opened discussions with the ExCel London venue about moving the COP26 climate change summit from Glasgow, according to the Financial Times (£, online only).

The Advertising Standards Authority is to investigate influencers promoting unregulated foreign exchange investment schemes, to see if there is a commercial relationship between the traders and influencers, reports The Telegraph (£, p14).

Top European asset managers and banks said competition authorities may be better equipped than securities regulators to ensure that exchanges charge fair prices for data on stock prices reports Reuters (online only).

WHAT THE COMMENTATORS SAY

Writing in City AM (online only), Zara de Belder, associate partner and head of Maitland/AMO Sustain, explores changing attitudes towards corporate responsibility, arguing that ?organisations are forgetting to consider their own sustainability credentials, risking their reputations as well as jeopardising their commercial and community relationships?. Ms de Belder comments that companies are adopting a box-ticking approach, which is not enough to tackle the climate emergency. Ms de Belder concludes by stressing the need for organisations to deliver ?a comprehensive, inside-out solution to corporate responsibility? and to consider how they want to contribute over the next decade and beyond. She warns that if they ignore this then they run the risk of alienating all their shareholders.

LATEST BLOGS

Marcus Martinez, Director, Head of Open Banking at CGI blogs on how Open Banking needs to consider 'hyper-casual' customers.

LATEST VIDEOS

Katy Worobec, our Managing Director of Economic Crime, welcomes everyone to today's UK Finance Economic Crime Congress. #ECC2020