No More Passporting After Brexit?! What Can You Do?

As you may know, Brexit will be officially triggered at the end of March 2017. As a result, the status of the European passport issued by the United Kingdom will definitely change. Financial institutions based in the United Kingdom (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 pursue their activities across the entire European financial market. 

Brexit has a significant impact on financial institutions and their business activities in the European Union. Here are some of the main consequences:

1. Loss of the EU passport: After Brexit, UK financial institutions lose the so-called EU passport, which previously allowed them to conduct 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: To maintain access to EU markets, UK financial institutions must seriously consider establishing a physical presence in an EU country, such as Frankfurt, Germany. This presence enables them to continue offering services in the EU and serving EU clients.

3. Regulatory requirements: Regulatory requirements for financial institutions may change after Brexit. It is important to observe relevant regulations such as MiFID II/MiFIR and AIFMD and adapt accordingly to ensure business continuity.

4. Individual solutions: There is no one-size-fits-all solution for all financial institutions. Every company must develop its own strategy to deal with the new realities after Brexit. This requires a careful analysis of business activities and a tailored approach.

Our experienced and professional team is at your disposal to help you identify and implement the best options for your company. We understand the challenges that Brexit brings and work with you to ensure that your business activities can continue successfully in the changing financial landscape. Contact us today to receive further information and discuss your questions.