More than a thousand banks, asset managers, payment companies and insurers from the European Union are planning to open offices in the UK so that they can continue to serve their UK clients, Bovill Consulting Services said Monday..
New offices and staff will help reduce business costs as the current seamless two-way direct communication between UK and EU companies will end in December following the Brexit transition.
As a first step, companies that were still able to serve British clients directly from their homeland applied for a temporary work permit in the UK after January 31, the UK’s exit date from the European bloc, Bovill reported, citing figures from the UK Authority. Financial Conduct Authority (FCA).
By October 2019, FCA had received 1,441 applications from companies to use the Temporary Permission Regime (TPR). When the current passport system ceases to function, TPR will allow EEA firms and funds to continue operating in the UK while they are busy obtaining full authorization. from UK regulators.
«These numbers clearly show that many firms view the UK as the premier European center for financial services.», – said Michael Johnson, Bovill consultant.
More than 300 UK financial companies have opened offices in the EU to continue serving clients after Brexit, according to a recent survey by think tank New Financial..
EY consultants said Monday that major UK companies are currently implementing plans to allow them to continue to operate in the EU after Brexit. They estimate that about 7,000 units will be relocated from London to the continent., 2,400 jobs will be created and staff recruited to work in new offices in the EU.
According to EY, the companies are now very closely following the negotiations on the future relationship between Britain and the EU..
UK Treasury Secretary Sajid Javid told the Financial Times on Saturday that in the future, access to the EU market will be carried out within the framework of the «equivalence», used by the United States, Singapore and Japan.
The largest number of applications for temporary permits came from Ireland (228). And also from companies from France (170), Cyprus (165) and Germany (149).
«In practice, these numbers mean that European companies will buy office space, hire staff and hire professional consultants in the UK.», – said in Bovill.