After the sunset: The impact of Brexit on EU market access for banks and investment firms Dr. Mathias Hanten, Dr. Osman Sacarcelik, 23 February 2018, Frankfurt am Main EBI Global Annual Conference on Banking Regulation
Introduction The decision of the to leave the EU and the withdrawal of the from the single market triggered specific legal and regulatory issues particularly for -based banks and investment firms. A major consequence of the Brexit will be a loss of the EU-passports for -based Institutions which are currently authorised to provide their services across the European Economic Area ( EEA ). The central question is whether and how based institutions can continue to offer their cross-border services within the EU and the EEA without the EU-passport. Deloitte Legal 2018 2
Please cast your minds back! We were young Majority of third-country providers opted for London as a European Hub. Second Banking Directive (89/646/EEC, 15 Dec. 1989) Implementation: 01 Jan. 1993 Investment Services Directive (93/22/EEC, 10 May 1993) Implementation: 31 Dec. 1995 EEA Member Branches Deloitte Legal 2018 3
What are target structures? EU Passport -country Branch Cross-border EEA ( Corp EEA) EEA ( Corp EEA) Branches EEA ( Corp EEA) EEA ( Corp EEA) Branches Deloitte Legal 2018 4
And? Old wine in new bottles? RELOCATION Deloitte Legal 2018 5
Are these topics new? Brexit provides for a more focused perspective. No, but... law makers and regulators are expected to give clearer guidance. the more focused perspective crystallises regulators concerns, which are Deloitte Legal 2018 6
Remaining concerns? Double-hatting Is a double-hatting admissible? -country Branches Supervision How would third country branches supervision look like? Exemption How can an exemption work? Reverse Solicitation To what extent the reverse solicitation work? Investment Firms Supervision How would investment firms supervision look like? Outsourcing To what extent can sources be outsourced? Branching-back Is branching-back admissible? Deloitte Legal 2018 7
What s the conclusion? It s nothing new! Missing guidance from regulators? Is there a need for clear guidance? SSM will be put to the test. Deloitte Legal 2018 8
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