New article: UK financial sector proposes untested system to keep EU access read more at here http://www.spinonews.com/index.php/economic2/item/3142-uk-financial-sector-proposes-untested-system-to-keep-eu-access

Britain's financial sector is drawing up proposals on how it could still serve EU clients after Brexit, even as firms begin establishing new operations on the continent to keep access to the European market.

Regulatory and banking experts working for the City of London and lobby group The City UK are basing their ideas on a 'mutual recognition' system. Under this, the European Union and Britain would broadly accept firms in each other's financial markets because their home regulatory systems apply similar standards.

Such a system might limit what is likely to be a flow of business and jobs from the London financial center, by far Europe's biggest, to countries that remain in the EU.

However, skeptics say mutual recognition is largely untested globally and would struggle to win approval within the EU, where there are already calls to make it harder for British financial firms to operate in the bloc, not easier, after Brexit.

Undaunted, the experts on the International Regulatory Strategy Group (IRSG) will set out their proposals in a forthcoming paper. This aims to provide ideas for British negotiators after Prime Minister Theresa May formally notified Brussels on Wednesday of her country's intention to seek a divorce from the remaining 27 EU member states.

"You are saying the outcomes from the UK and EU27 regulatory systems are broadly comparable and this is the way to go forward," IRSG Chairman Mark Hoban told Reuters.

Some British financial firms - and foreign banks using London as a European base - are already working on plans to move jobs to centers such as Frankfurt, Dublin, Paris and Luxembourg for after Britain loses its blanket "passporting" rights to sell financial services in the EU single market.

Germany, however, says they will not be offered any special exemption from regulations