As Brexit’s extended deadline draws closer, businesses of all kinds have to face a new reality.
When it comes to the financial sector, many have already made plans to set up shop in the UK. Over a thousand banks, insurers, and other financial businesses have announced plans to open up new offices in the post-Brexit UK so they can continue serving British clients. These companies plan on opening offices and hiring new staff to fight the loss of business that is expected when Brexit comes. The unlimited two-way access for business between the UK and the rest of the EU is expected at the end of January. However, the Brexit deadline has been pushed back before and may possibly be pushed back again.
The thousands of EU financial companies serving British clients have until now been able to do so from their home countries. Now, they are applying for temporary permission to do business in the UK after January 31st, according to regulatory consultancy Bovill.
On top of the news of EU companies preparing for Brexit, there are British companies’ preparations as well. Over 300 British financial firms have set up new operations in the EU so they too can continue serving clients across the English Channel. For now, firms on both sides of the Channel are watching Brexit negotiations very closely while preparing for what now seems to be the inevitable.