On 31 October 2019, the UK will leave the EU after 46 years of continuous membership.
Disentangling of the UK from the various European institutions into which it has become woven will not be a trivial task; arguably it will be the most complex demerger ever contemplated. Impacts include the potential disruption to the lives of millions of European nationals living outside their home country, the disruption to complex supply chains in industries such as automobiles and aviation, and the disruption on capital flows and the financial services industry.
Banks, which will no longer be able to ‘passport’ licences from the City of London to the EU and vice versa and the European Central Bank requires banks to uphold a presence that is more than an “empty shell“ within EU territory. What exactly Brexit will mean for a Financial Institution, and what actions will need to be taken as a result? The exact answer to this question still depends on the result of UK-EU negotiations, but likely outcomes and their implications can already be analysed now.
International banks are currently in the process of finalising their Brexit strategy, including location, booking model, resources, business model, and permissions. The challenge faced by many is uncertainty: how will the political negotiations end, and what will this mean for business?
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Does “equivalence” solve the Brexit woes of the financial services industry? Oscar McCarthy curbs the enthusiasm that follows the latest news about a possible deal for the financial sector.
Avantage Reply is partnering with the
Dutch Foreign Banker’s Association to discuss the impact of Brexit on Financial Services