By: Marc Wessels
Much has been written about the economic consequences of Brexit, and they are likely to be considerable. Even though we don’t yet know for certain when Brexit will happen, or what it will look like when it does happen, we do know that everyone will be affected. Because the consequences of Brexit, many of which are already being felt, will not just impact local and national economies in Europe – the effects will be global. But what exactly will these effects be? We’ve heard a lot about the agricultural sector and the import and export of physical products, but what about our financial institutions?
Transitional period after Brexit
Financial institutions can’t simply provide their services anywhere; they need certain permits and have to be monitored by a supervisory body. If the UK and EU manage to come to a deal about the UK’s withdrawal, a transition period will start. During this period, little will change – EU laws and regulations will remain in force – and there will be negotiations about what the post-Brexit situation will look like.
How are banks, insurers and investors preparing for Brexit?
If no deal is reached, many UK-based financial institutions will need a permit to remain active in the EU. This means that they need to be prepared for all possible outcomes and that they can’t afford to lean back and await the results of the negotiations. As a proactive response to Brexit, many financial institutions have announced plans to relocate or have already done so. So far, the Dutch Authority for the Financial Markets (AFM) has received permit requests from 20 to 50 British companies looking to move their headquarters to the Netherlands. For official information and procedures, we recommend that you consult the AFM’s website.
Consequences for British banking customers
Many UK residents use the services of banks elsewhere in the EU and these customers could be affected by Brexit too. Depending on what kind of deal is reached between the UK and EU, your bank or investor might have to request a permit to remain active in the UK after Brexit. In case of a no-deal Brexit, European banks will – in principle – no longer be allowed to operate in the UK, but that’s just one of many possible scenarios. Financial institutions will have to keep their customers informed of any relevant developments, and customers, in turn, should ask their banks how Brexit will affect them.
Relocating to the Netherlands?
Brexit Amsterdam offers translation services and training courses to help you make the transition as smoothly as possible: