Financial services industry participants are increasingly focusing on the detail of what the UK Government's Chequers proposal, and the initial EU27 reaction to it, will mean in practice for their business's ability to access EU27 markets following Brexit.  It seems clear that the Chequers proposal will not amount to a continuation of the existing passporting regime and that some degree of change is inevitable.  However, for many businesses the impact of that change will vary significantly depending upon whether the EU27 is willing to agree to the UK Government's proposal of so-called enhanced equivalence, going beyond the existing level of access that some (non-EU) third country firms currently enjoy; whether the EU27 will offer only existing equivalency arrangements (putting UK firms in a similar position in terms of EU27 access to, for example, firms located in the USA); or, whether, post-Brexit, UK financial services firms will face a truly hard Brexit with no access rights at all unless the UK first goes through a lengthy assessment process.  

In our note, we examine this and other key legal issues arising from the UK Government's white paper.