Following a survey of AFB members conducted during the Summer and Autumn of 2017, the AFB, in conjunction with Norton Rose Fulbright, has published a report on the impact of Brexit on the foreign banking sector in the UK.
The report focuses on the following areas:
The UK’s post-Brexit relationship with the EU – in particular, the replacement of the EU passport;
Impact of any subsidiarisation requirement on branches of foreign banks;
The location of euro-denominated clearing;
Current and future business activities following the ‘Leave’ vote;
The immigration impact on staff;
Future of London as an international financial centre and other centres around the world.
The full report is available below:
Recently, the AFB, with CEOs of its EEA banking members, met with Ministers from DExEU and HM Treasury to discuss their views on Brexit and the actions their banks are taking, and looking to take, as the negotiations develop.
Though a variety of issues were discussed, the main areas of focus were:
How foreign banks in the UK will maintain their current level of EU related business activities in the UK post-Brexit
Concerns around any potential requirements for UK branches of EEA banks to subsidiarise
The residency rights of EU nationals currently in the UK and future access to talent when the Government establishes and then operates the UK’s post-Brexit immigration system
The ability of London to maintain its position as a leading international financial centre post-Brexit
The type, and length of time, of any potential transition period as the UK migrates to its post-Brexit relationship with the EU
In October the AFB, with CEOs of its non-EEA banking members, met with Ministers from DExEU and HM Treasury to discuss their views on Brexit; the discussion points were similar to those focused on by the EEA banks above.
The AFB with a number of its members discussed their views on Brexit with Mark Field MP. As with our meetings with HM Treasury and DExEU, the main areas of focus were on the UK’s post-Brexit trading relationship with the EU, the Government’s post-Brexit immigration system, and a transition period.
In late autumn 2016, the AFB provided written evidence to the House of Lords EU Financial Affairs Sub-Committee, with whom the AFB had been liaising regarding the potential impact of Brexit on the foreign banking sector in the UK.
The submission provided a breakdown of the key concerns from the various types of AFB members following a survey conducted of the wider membership in summer 2016, shortly after the Referendum vote. Many of the issues raised in the survey, most of which are detailed in the submission of evidence, have provided the basis for the AFB’s discussions with the Government and Regulators about the sector’s key concerns on Brexit.
The AFB’s evidence to the Sub-Committee is available on Parliament’s website.
The AFB continues to hold regular bilateral engagements with DExEU and HM Treasury to ensure that the Government and the AFB continue to work together to ensure that the foreign banking sector’s views on Brexit are understood by policy makers through discussions, roundtables and publications.