Brexit has been on headlines for over a year, and it is still one of the most important topics for the EU. Now, over a thousand banks, payment firms, insurance companies, and other financial entities in the EU are planning on opening head offices in the UK, after Brexit is finalized. This is so they can resume providing their service to UK clients.
What Does This Mean?
After Brexit is finalized, the offices of the financial entities will open a branch in the UK and the new employees will attempt to fix the loss of business. This is incredible crucial because there will be no direct access between Britain and the European Union after the end of December, according to UK officials.
The first step for the new offices in the UK is that they have requested for temporary permission to operate in Great Britain after the 31st of January. The temporary permission must be submitted to UK’s financial watchdog, the Financial Conduct Authority (FCA). The FCA will take charge of all the financial procedures after Brexit, in order for all transitions to go smoothly.
According to statistics from the FCA, Michael Johnson, a consultant at Bovill, “These figures clearly show that many firms see the UK as Europe’s premier financial services hub.”
Over three-hundred financial entities and companies in Great Britain have opened in the EU, in order to continue providing financial services to clients in the region after Brexit. The direct access of the EU and UK markets are undefined, and will be discussed under negotiations between both parties. However, it is improbable to think that the access will give free reign and access to the full range of financial services.
Brexit Affecting Both Britain and Ireland
Bovill has also reported that 228 financial firms, payment companies, and other institutes from Ireland have requested for temporary permission to be able to continue offering UK clients their services, until they manage to attain the approval for a new UK-based office. Dublin is emerging to become a very popular location for insurance and asset managers who are based in the UK, who need a head-office in the UK; this shows the strong bond between the UK and Ireland.
There are financial firms from France, Germany, and Cyprus that have requested for almost 200 temporary permissions each. “In practical terms, these figures mean that European firms will be buying office space, hiring staff and engaging legal and professional advisers in the UK,” Bovill reported.