Brexit Update - UK Signals Countdown To Hard Brexit

Yesterday's speech by the UK Prime Minister has set out the most unequivocal statement on the UK's stance on Brexit to date. Theresa May has now confirmed that the UK "cannot possibly" remain within the EU Single Market or within the existing EU Customs Union.

This is the clearest statement provided so far from the UK government on its intentions in the upcoming negotiations and has been interpreted by many commentators as signalling a 'hard Brexit' will now come to pass.

This update assesses the implications of Theresa May's speech for UK-based credit institutions, MiFID firms and other regulated financial service providers (RFSPs). For those RFSPs who were established in the UK specifically for the purpose of gaining access to the EU Single Market, it very much appears that a timeline has been imposed on their current business model and that post-Brexit options must now be explored.