What is ‘Passporting’?

Passporting is a term used in the context of financial services. For members of the EU single market it means that if a firm is authorised to undertake certain activities by the regulator of one EU member state, it can apply for a ‘passport’ to do business throughout the EU without needing further authorisation. UK-based firms lose this automatic right with Brexit. The UK is now seeking an equivalence decision from the EU to allow UK-based financial services firms to continue to serve EU customers from the UK.