Clifford Beaumont: Regulators Warn EU to Prepare for Brexit

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Clifford Beaumont Regulators Warn EU to Prepare
for Brexit
1888 PressRelease - Clifford Beaumont - Felix
Hufeld urges the European Union to prepare
temporary solutions in order to transition a
post-Brexit world without market
distortion. According to Germanys financial
watchdogs, European Union regulators require
interim solutions in order to safeguard against
market distortions in the event of British-based
banks facing a Brexit without a trade deal.
Analysts at Clifford Beaumont believe that the
UKs departure from the EU will not be an easy
transition given that numerous rounds of
negotiations have resulted in little
progress. Felix Hufeld, President of Germany's
Federal Financial Supervisory Authority BaFin
(Bundesanstalt fuer Finanzdienstleistungsaufsicht)
stated that whatever the result of Brexit, it
will have a high cost for both British and EU
consumers and that the cost of conducting
business will increase. Hufeld added that
regulators will need to look at interim
strategies to prevent problematic distortions in
the markets while transitioning to a post Brexit
world. Frankfurt is coming out as a clear
favourite financial center out of those hoping to
attract banks based in London who will look at
opening new offices in the EU to continue to
cater to customers there. Representatives from
leading London-based lenders have announced their
intention to spend a lot more time in Germanys
financial center post Brexit.
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Hufeld stated that new hubs being established by
UK-based banks must be operational and not merely
empty shells. Clifford Beaumont economists noted
that around 20 UK-based lenders have already
applied for licenses to operate in Frankfurt with
a Munich-based insurer but that none have been
approved just yet. Banks are planning a
division of tasks between their offices in the EU
and London and will need to transition all the
systems that have been created over the
years. http//www.twn-media.com