The UK and EU's relationship helped cement London’s position as one of the world’s biggest financial centers and as a major contributor to British tax revenues. Here's how London’s ability to access the EU market and serve clients in the bloc will change https://reut.rs/3nNgCup 

What changes in January?
From the start of 2021, blanket access for British financial firms to the EU ends and will be replaced by an EU system known as equivalence

What is equivalence?
This refers to an EU system that grants market access to foreign banks, insurers and other financial firms if their home rules are deemed by Brussels to be 'equivalent,' or as robust as regulations in the bloc

Has equivalence been granted?
With less than four weeks to go, Brussels has only granted equivalence so far for two activities: derivatives clearing houses in Britain from January for 18 months, and settling Irish securities transactions for six months

Will EU firms have to leave London?
To help maintain London as a global financial center, Britain is allowing EU firms to stay for up to three years in the hope they will apply for permanent UK authorization

What's all this talk about divergence?
Brussels says it has not decided to offer equivalence more broadly yet because it wants reassurances that British rules will stay similar to those in the bloc, to avoid Britain potentially having a competitive edge over the EU