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Brussels must have the power to approve British financial regulations after Brexit if the City wants to preserve access to EU markets, a senior EU official said today. As the Press Association reports, the European Commission vice-president Valdis Dombrovskis, who is responsible for financial stability, said that future access would depend on a system of “equivalence” under which Brussels would exercise “unilateral and discretionary” powers to judge whether UK regulations met its standards.

Speaking at a conference in the City of London, he also said that financial companies should “prepare for all scenarios” – including the fact they will lose passporting arrangements after Brexit.

Equivalence decisions are and will remain unilateral and discretionary EU acts. Even in trade agreements, governments do not give up power over their core responsibility to protect financial stability.

Equivalence is only possible if there is close convergence of rules and supervision. If the EU and a third country should happen to go different ways, the conditions for equivalence would fall. This means that equivalence may be changed or withdrawn.

The #EU is the most open major market for financial services in the world. Free movement of capital is grounded in our founding treaty, and my job is to promote and safeguard this freedom #CityWeek2018 pic.twitter.com/ltB64xKRPF

Much is uncertain around the negotiations, so firms and supervisors need to keep preparing for all scenarios. We are helping where we can, but in the end, it’s for firms to identify how #Brexit will impact their business #CityWeek2018 pic.twitter.com/xU6qqi07UT

We should not let perfect be the enemy of good. Despite its imperfections, equivalence has proven to be a pragmatic solution that works in many different circumstances, and it can work for the #UK after #Brexit as well #CityWeek2018 pic.twitter.com/bfstiqSItR

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A Holocaust survivor has said Jeremy Corbyn must lay out concrete actions to expel antisemites from Labour, ahead of a crunch meeting between the party leader and the two largest Jewish organisations, my colleague Jessica Elgot reports.

Related: Corbyn must expel antisemites, says Holocaust survivor

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