The U.K. now sees its banks having a similar relationship with the European Union after leaving the bloc as Japanese ones do.
The latest U.K. paper published Monday confirms the government wants a form of "equivalence" on financial services — where the EU recognizes that rules are as strict as its own — but a more generous version of it than other non-EU countries enjoy. It cites the EU's pact with Japan as a precedent for a deal because it includes a commitment to take into account the impact of each other's decisions, as well as regulatory dialogue between the two sides.
The document, essentially the details of the skeleton proposal in Prime Minister Theresa May's "white paper" last month, confirms the government has scaled back its initial ambition for British financial institutions to keep the same sort of so-called passporting access to the EU's single market as they do now.