Former EU finance commissioner Jonathan Hill has said it’s unlikely Brussels will give UK financial services companies the “highly prized” access to European markets that they hope for, The Financial Times (FT) reported on Tuesday.

Hill said that Brussels is targeting London’s position as a global centre for financial services, according to the newspaper.

The current post-Brexit challenge for the financial services industry is trying to meet new rules on regulatory equivalence.

Under the new rules, access to financial markets in both the EU and UK will be based on proving each party has equal regulatory systems.

According to The FT, so far Brussels has granted the UK time-limited equivalence on just two out of 40 financial areas where the capital is pursuing access.

Earlier this month, the Financial Conduct Authority (FCA) set out changes to the UK’s regulatory environment following the end of the Brexit transition period.

The announcement came amid concerns raised by lawmakers and industry leaders that more clarity is needed over the equivalence arrangements for UK and EU financial services companies, particularly with regards to data sharing.

Although the EU has only granted access to two financial areas, Hill told the FT that the UK has an advantage over Europe because it can form regulation more quickly.

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