It is now clear that the United Kingdom is committed to Brexit, although the nature of any continuing relationship with the remainder of the EU remains to be negotiated. However, it seems unlikely that the current EU passporting system for the financial services industry will continue to apply to UK institutions, or to EU banks doing business in this country.
Banks face unprecedented difficulties as a result of this situation. They may enter into long-term loan transactions and find that their regulatory status may change prior to maturity. In addition, many banks may wish to shape business plans for the future and cannot simply wait out an extended period of uncertainty.
The briefing linked below examines the impact of Brexit on UK and EU institutions, and considers some of the options that may be open to them in the post-Brexit era.