HARD BREXIT IMPACT ON UK CREDIT INSTITUTIONS. Kasper Van Landeghem WSG - Belgrade, 3 February 2017

Transcription

1 / HARD BREXIT IMPACT ON UK CREDIT INSTITUTIONS Kasper Van Landeghem WSG - Belgrade, 3 February 2017

2 / TOPICS 1. Scope: banking activities 2. Option 1: undertake no action 3. Option 2: opening/keeping a branch 4. Option 3: obtain full licence 5. Conclusion 6. Q & A 2

3 / 1. Scope: banking activities 3

4 / 1. SCOPE: BANKING ACTIVITIES Definition credit institution under CRD IV and CRR. Two activities: taking deposits or other repayable funds from the public; granting credits for its own account. Not covered by today s presentation: other services; and other regulations. 4

5 / 2. Option 1: undertake no action 5

6 / 2. OPTION 1: UNDERTAKE NO ACTION Which banking activities can a UK credit institution continue to perform without an additional licence or registration? (1) Local banking activities. (2) Non-regulated banking activities. 6

7 / 2. OPTION 1: UNDERTAKE NO ACTION (1) Local banking activities CRD IV: Carried out within the territory. Where does the characteristic performance take place (Commission Interpretative Communication 97/C 209/04)? Elements that may be relevant to determine whether or not banking activity takes place cross-border: Who approaches who? Has the EU client some kind of presence in the UK? Where are the accounts located? Which law governs the agreements? How is the website set up? 7

8 / 2. OPTION 1: UNDERTAKE NO ACTION (2) Non-regulated banking activities. Taking of deposits. Prohibited without licence (CRD IV) Lending activity CRD IV? Under Belgian law, no licence required provided that: no taking of deposits or other repayable funds from the public in Belgium; and no lending to consumers in Belgium. 8

9 / 3. Option 2: opening/keeping a branch 9

10 / 3. OPTION 2: OPENING/KEEPING A BRANCH CRD IV regime: Requirements applicable to the UK and the credit institution. Rules not more favourable than those applicable to branches of EU credit institutions. Main drawback: no passport. Agreement between the EU and UK to allow identical treatment throughout the EU? 10

11 / 4. Option 3: full licence 11

12 / 4. OPTION 3: FULL LICENCE 1. How to obtain a licence as credit institution in the EU? a. Incorporate a new entity? b. Take over a EU credit institution? c. Move the head office from the UK? 2. Where to obtain the full licence? 12

13 / 5. Conclusion 13

14 / 5. CONCLUSION Questions to be asked by UK credit institution 1. Are our banking activities located outside the UK? 2. Are our banking activities subject to a licence or registration requirement? 3. Should we establish a branch or obtain a full licence? 4. Where should we establish a branch or obtain a full licence? 5. How to obtain full licence? 14

15 / 6. Q & A 15

16 / 6. Q & A 1. Which activities will be deemed to be located within the EU? Where does the characteristic performance take place? Sufficient that the funds are credited to an account located in the UK? Sufficient that the EU client operates by way of a UK branch? Sufficient that no marketing is done outside the UK? 16

17 / 6. Q & A 2. Which activities are regulated? Taking deposits (or other repayable funds) from the public. Lending? Sufficient that no loans are made to consumers? Does lending to certain companies (for example SMEs) require a licence? 17

18 / 6. Q & A 3. Will many UK credit institutions obtain a licence for their (existing/new) branches throughout the EU? 18

19 / 6. Q & A 4. How should the full licence be obtained? a. Move the registered seat from the UK? b. Incorporate a new entity? c. Take over a EU credit institution? 19

20 / 6. Q & A 5. Which country should be chosen to obtain the full licence? Which elements should be taken into account? Location? EU Member State likely to remain in the EU? Supervisory authorities and regulatory regime? Available work force? Labour laws? Tax regime? 20

21 / QUESTIONS? Kasper Van Landeghem Tel Havenlaan 86C B414 Avenue du Port 1000 Brussels, Belgium 21

22 / ALTIUS Brussels ALTIUS Antwerp ALTIUS Louvain-La-Neuve / Tour & Taxis Building Minerva Building Business Center Centre du Lac Havenlaan 86C B414 Avenue du Port Karel Oomsstraat 47A B4 Rue de Rodeuhaie Brussels / Belgium 2018 Antwerp / Belgium 1348 Louvain-La-Neuve / Belgium t t t IN COOPERATION WITH TIBERGHIEN