Key takeaways

• A recently published European Commission document explains the Commission’s approach to “equivalence” decisions - determining that a third country’s regulatory, supervisory and enforcement regime is “equivalent” to the corresponding EU regime, and can therefore be relied on by the EU for specific compliance purposes.
• The document summarises the equivalence decision making process and sets out the objectives the Commission takes into account in reaching an equivalence decision.  It concludes that more work is necessary to enhance the effectiveness of the process.
• The issue of equivalence will become critically important for the UK once it leaves the EU, and the decision making process is likely to come under increased scrutiny from both sides.