As you may know, Brexit will be official at the end of March 2017. This will definitely change the status of the European passport issued by the UK. UK-based financial institutions (e.g. banks, investment firms, fund managers, insurers, insurance intermediaries, payment institutions and e-money issuers) will be treated as third-country firms after Brexit and will no longer be able to conduct their activities throughout the European financial market.
Brexit has significant implications for financial institutions and their operations in the European Union. Here are some of the main consequences:
1. loss of the EU passport: after Brexit, British financial institutions will lose the so-called EU passport, which previously allowed them to do business in all EU countries. This means that they are now forced to find alternative ways to remain active in EU markets.
2. need for a presence in the EU: in order to retain access to EU markets, UK financial institutions need to seriously consider establishing a physical presence in an EU country, such as Frankfurt, Germany. This presence will allow them to continue to offer services in the EU and serve EU clients.
3. regulatory requirements: Regulatory requirements for financial institutions may change post-Brexit. It is important to be aware of relevant regulations such as MiFID II/MiFIR and AIFMD and adapt accordingly to ensure business continuity.
4. individual solutions: There is no universal solution for all financial institutions. Each business needs to develop its own strategy to deal with the new circumstances post-Brexit. This requires a careful analysis of the business and a tailored approach.
Our experienced and professional team is available to help you identify and implement the best options for your business. We understand the challenges posed by Brexit and will work with you to ensure that your business, in the changing financial landscape, can continue successfully. Contact us today for more information and to discuss any questions you may have.