Business as usual during Brexit transition period
The Bank of England has assured finance companies operating in the UK that they will be able to carry on operations as normal until the end of the Brexit implementation period, in a move aimed at avoiding a potentially disorderly shift of people and operations across the continent.
Companies will be able “to plan that they will be able to continue undertaking these activities during the implementation period in much the same way as now,” the BoE said.
Britain and the EU had agreed last week to a transition period of 21 months that will follow Britain’s departure from the bloc in March 2019 during which companies will have unchanged access to the bloc’s markets.
Welcoming the decision, Simon Lewis, chief executive of the Association for Financial Markets in Europe also said: “We also welcome the publication of the final policy on the authorisation of branches of international banks, providing further clarity for banks. It will now be important for the UK and EU regulators to put in place cooperation arrangements to support this.
“While this additional regulatory clarity is very helpful, the approach of the regulators in the EU27 will also be key in achieving the objective of an orderly withdrawal. We hope that over the coming weeks, much-needed further clarity can be provided on issues such as contractual continuity, access to financial markets infrastructure and data flow.”