UK-EU REGULATORY DIVERGENCE TRACKER - 5TH EDITION – OCTOBER 2022

In many cases there is little incentive for the UK to loosen its standards compared to the EU, because the size of the EU single market means businesses prioritise compliance with EU rules even when they are more onerous, and because adherence to the EU rulebook for UK business to export there. [...] Similarly to the UK regime, MiCA will require stablecoin issuers to be present in the EU and subject to the supervision of the European Banking Authority. [...] The OIM was established in 2021, to provide expert – but It will be interesting to see what the OIM advises; whether legally non-binding – advice to the governments of the UK the UK governments choose to adhere to its advice; and about the operation of the Internal Market. [...] in less positive outcomes for the UK in the approach the EU One such change was announced in the speech: the takes to regulatory change such as requirements to avoid shell ending of the cap on bankers’ bonuses in the UK. [...] The UK has triggered the ‘formal consultations’ mechanism of the TCA, which is the first step in the dispute resolution process, and leads to a meeting of the UK-EU Partnership Council or a sub- committee.