The EU strip Canada, Brazil and Singapore of market access rights: FT

The European Commission will prevent five countries from accessing certain segments of the European Union's financial markets – an initiative that could hit the UK after it leaves the bloc, according to a report released by the Financial Times on Sunday.

The decision will see the Commission remove certain market access rights from Argentina, Australia, Brazil, Canada and Singapore, the FT reported.

The block grants access to the financial market to lenders, investment firms, clearing houses or credit rating agencies not belonging to the European Union as part of its so-called system. "equivalence", insofar as it considers that their rules of origin are in line with those of the EU.

The five countries are deemed to no longer regulate credit rating agencies as rigorously as the bloc, thus removing them from a position allowing European banks to rely on these ratings, the Financial Times reported. , quoting a newspaper document.

This is the first time that such equivalence provisions have been removed.

This is a system to which the United Kingdom will probably have to subscribe after leaving the European trading bloc. The EU has stipulated that Britain should rely on equivalence provisions for access to the single market after Brexit, according to the FT.

Some see this initiative as a warning to Britain of the need to align it with EU rules if it wants its trading platforms and financial companies to continue having direct access to block customers.

Read the Financial Times report on the removal of certain market access rights for five countries.

– Reuters contributed to this report.