This comes as the Chancellor visits Brussels for a series of meetings with European Commissioners, in the first visit from a UK Chancellor in over three years.

Commissioner McGuinness is the European Commissioner for financial services, financial stability and capital markets union.

The Memorandum of Understanding signifies an important step in UK/EU relations post-Brexit. The UK is a leading global hub of financial services – of the £11 trillion of assets managed in the UK in 2020, around 44 per cent is on behalf of international investors including the EU.

The agreement will establish an ongoing forum for the UK and the EU to discuss voluntary regulatory cooperation on financial services issues. Both sides will share information, work together towards meeting joint challenges and coordinate positions where appropriate on issues ahead of G7, G20 and other international meetings.

The UK and the EU committed to the Memorandum of Understanding alongside the Trade and Cooperation Agreement. It adds to the growing number of regulatory cooperation arrangements the UK already has with major financial sector partners including the U.S., Japan and Singapore.

While the Chancellor is in Brussels he will also be meeting with Valdis Dombrovskis (European Commission Executive Vice-President responsible for an Economy that Works for People, also in charge of Trade) and Margrethe Vestager (European Commission Executive Vice-President for ‘A Europe Fit for the Digital Age and Competition). He will discuss the UK’s competitiveness and growth, the EU’s Green Deal Industrial Plan and economic security.