01 Nov 2018

Brexit and financial services: tentative deal agreed

Publications

Good news this morning as reports emerge of a Brexit deal being agreed between the UK and the EU for the financial services sector.

Continued access to European markets for UK firms is critical and severe disruption is expected should access cease in March 2019. We have already seen clients, as well as large institutions, making moves to shift operations and assets in certain markets into the EU prior to the March 2019 exit date.

Those large institutions include Barclays: the bank has applied to the High Court for an order that would enable it to transfer its European Economic Area business to the Republic of Ireland and this is due to be heard on 22 January.

Whilst this is certainly a promising development, the deal is described as ‘tentative’ with formal agreement expected within three weeks. As the soundbite goes, ‘nothing is agreed until everything is agreed’, so will this be enough to halt or even reverse the moves already being made?

For more information, please get in touch with your usual BKL contact or use our enquiry form.