Barclays is preparing to move £166bn of assets to Dublin, implementing their Brexit plan because, they “cannot wait any longer.
Barclays drew up the plans in case there is a no-deal with the Brexit withdrawal, the High Court has approved the move which involves some 5,000 clients.
The bank’s business amounts to £1.2trn in total assets, which is a significant proportion of their assets, the judgement by MR Justice Snowden revealed the details of Barclays move to Dublin.
Snowden said, “On any view, the scale of the transfer of business is huge.
“The scheme will apply to about 5,000 clients… and on the basis of the accounts for 2017 it is estimated that about €190bn of external assets will be transferred.”
He added, “Due to the continuing uncertainty over whether there might be a no-deal Brexit, the Barclays group has determined that it cannot wait any longer to implement the scheme.”
Barclays said, “As we announced in 2017, Barclays will use our existing licensed EU-based bank subsidiary to continue to serve our clients within the EU beyond 29 March 2019, regardless of the outcome of Brexit.
“Our preparations are well advanced and we expect to be fully operational by 29 March 2019.”
The judgement said, “The design of the scheme has been based upon an assumption that there will be no favourable outcome of the current political negotiations between the UK and the EU as regards passporting or the grant of equivalence status to the UK in respect of financial services.”
Carolyn Fairbairn, CBI director general said in a statement Tuesday evening, “This is another deeply frustrating day for British business. The never-ending parliamentary process limps on while the economic impact of no deal planning accelerates.
“The Brady amendment feels like a throw-of-the-dice. It won’t be worth the paper it is written on if it cannot be negotiated with the EU. Any renegotiation must happen quickly – succeed or fail fast.
“Firms will welcome confirmation that a majority of MPs oppose a no deal outcome. But rejecting a no deal doesn’t get a deal. Until MPs can agree a solution, delay will do nothing to lift the threat of an economic cliff edge that is draining money from the UK.”
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