Brexit: Continuity of current arrangements for banks and investment banks
One area where continuity is very important is the field of financial services. We are delighted to reproduce with permission an article (first published by Thomson Reuters Accelus on www.complinet.com) by a real expert in this field, Barnabas Reynolds, who is partner and head of financial institutions advisory and financial regulation at Shearman & Sterling LLP:
Much of the analysis offered in the media and other publications to date on the implications of Brexit for the bulk of business carried on in the City has been misleading and has overlooked or omitted key points.
The vast majority of banking and investment banking activity should be largely unaffected even in the worst case scenario, and the ultimate situation is likely to be considerably better than that.
In other words, by default, institutions conducting wholesale investment services — that is, broadly, principal and agency broking/dealing, custody services, fund management outside the scope of the Alternative Investment Fund Managers Directive (AIFMD), and investment advice with professional and sophisticated investors — into EU Member States will be able to do so without the need for regulation other than in the UK.
Any negotiated exit is likely to contain additional facilities for and recognition of Europe-wide business. Continue reading “Continuity for the City after Brexit”