Brexit-related information for banks
On 31 January 2020, the United Kingdom left the European Union (EU). As agreed upon in the Withdrawal Agreement, a transition period lasting until 31 December 2020 also commenced at that time. For now, nothing has changed for financial intermediaries. Nevertheless, affected financial intermediaries should use this time to make appropriate preparations for the post-transition period. Due to the close economic and legal ties between the EU Member States and the United Kingdom, Brexit will have far-reaching consequences for credit institutions and financial service providers active in Europe. This holds true in both economic and supervisory terms.
Access to the single European market is a major aspect in this context. At present, many financial intermediaries benefit from what are known as EU passporting rights, which authorise banks in the European Economic Area (EEA) to serve their customers throughout the entire EEA using just a single EEA-licensed entity. However, as things currently stand, the use of these EU passporting rights with the United Kingdom will cease in both directions once the transition period comes to an end. Against this backdrop, banks must re-examine their location policies.
With regard to establishing new entities or expanding existing entities in Germany, the Federal Financial Supervisory Authority and the Deutsche Bundesbank are available to assist you in Brexit-related issues pertaining to banking and financial regulation, payment transactions and market operations.