Britain, Brexit & Financial Services

Britain is currently the largest financial services centre in the world, according to the Global Financial Centres Index of March 2016. It accounts for over 20% of all financial services activity in Europe, with more than 250 foreign banks engaged in business there. Various pieces of EU legislation allow regulated entities – such as banks, fund and asset managers, financial intermediaries and insurance companies – that are authorised in one EU member state to carry out a broad range of regulated activities in other EEA countries, facilitated by either the right of establishment (via a branch) or by cross-border provision of services, generally referred to as 'passporting'.

In summary, the concept of passporting means that, once authorised in its home member state, the relevant regulated entity can 'passport' its services into every other EU member state without the need to get a local authorisation and without the need to set up a local subsidiary. Accordingly, if