According to a report published by Britain's “Financial Times” on Friday (February 16), the British government has formulated a “mutual recognition” plan with the European Union for the regulation of the country's financial industry after “Brexit,” but the EU side is unlikely to agree with the British side's wishful thinking “beautiful idea.”

According to the Financial Times, Chancellor of the Exchequer Philip Hammond will reveal this plan as early as next week. The plan suggests that after Britain “leaves the European Union,” the British side will do its best to ensure that financial supervision is consistent with EU rules, hoping to “mutually recognize” each other's financial supervision systems with the European Union. This means that financial service providers in the UK can still enter the EU market, and are therefore welcomed by the UK financial industry and financial center London. The programme also includes a mechanism for monitoring and resolving disputes.

However, the report also analyzed that it is unlikely that the EU will approve this package. Michelle Barnier, chief representative of the European Commission in Britain's “Brexit” negotiations, has stated many times that since Britain wants to leave the EU single market, it should not expect that its financial services industry can remain in the EU single market.