Most EU countries are taking it upon themselves to create agreements with the UK, or are creating domestic laws in preparation for a no-deal Brexit, according to a panellist at this year’s TSAM London
The panellist of a global bank said that the indications of individual countries doing this are similar to the European Securities Markets Authority (ESMA) recent deal with the Bank of England for the recognition of central counterparties (CCPs), in the event of a no-deal Brexit.
The recent deal also recognises central securities depositories established in the UK.
The speaker discussed the UK government’s possible vote on 12 March, to decide on a “tweaked deal or a no-deal with no transition”.
She added: ”It is quite likely there could be no deal.”
The panellist said countries that have put forward or are drafting domestic laws and/or agreements with the UK in the case of a no-deal Brexit include Sweden, Austria, Malta, Finland, Spain, Belgium and Luxembourg, among others.
She affirmed, of these countries, “all have Brexit decrees, all have, or are, drafting decrees, they are going out on their own for contingency plans”.
Another panellist, who works at a global investment firm said all his business’ preparations have been moving toward a no-deal Brexit and he affirmed his business “would be ready if 29 March goes ahead”.
The moderator then asked the panellists how Brexit features in client relationships.
To this, one panellist said: “If you're in charge of contingency, and you are ignoring a hard Brexit, you’re probably not doing your job properly.”
He added: “Moving clients is a process that can’t easily be reversed, but you need to have that insurance policy for Brexit. If you’re looking at fund jurisdiction, most firms now have a Luxembourg or Ireland product.”
Another panellist said he had not had to move many staff and looked at it as not a massive migration but an “expansion of capabilities”.
He added: “In Ireland, we have staffed up appropriately, it's not hundreds of people being moved. We have hired locally.”
