Brexit-related information for banks
Following the referendum vote of 23 June 2016, it is now envisaged that the United Kingdom will leave the European Union (EU). Given the close economic and legal ties between all EU Member States, this decision may trigger far-reaching implications for financial institutions with business dealings in Europe, both on an economic and a supervisory level.
As regards the latter, one important issue is access to the Single Market. Currently, many financial intermediaries benefit from so-called "EU passports", which enable entities domiciled in the European Economic Area (EEA) to do business with their EEA clients by having just one EEA-licensed subsidiary.
EU-passporting with the United Kingdom, however, may end with the UK leaving the EU. Against this backdrop, financial institutions may want to reconsider their location strategy. With regard to establishing a new or expanding an already existing entity domiciled in Germany, the German supervisory authorities stand ready to discuss the pertinent issues regarding banking and financial supervision, payments and market operations.