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Banks will definitely lose passporting rights post-Brexit, Barnier says

By Conor Coyle

Date: Monday 20 Nov 2017

Banks will definitely lose passporting rights post-Brexit, Barnier says

(ShareCast News) - Banks and financial services firm operating in the UK will lose their so-called 'passporting rights' after Britain leaves the European Union, the EU's chief Brexit negotiator said on Monday.
Several financial institutions have indicated plans to move jobs away from London and other areas of the UK in the case of losing such rights, which allow bankers to move between member states freely.

Negotiations between the two sides have stalled in recent weeks ahead of a key meeting of European leaders in December where they will decide if enough progress has been made to move forward to the next stage.

Speaking in Brussels, Michel Barnier said there would be no opt-in options for the UK, as "Brexit means Brexit".

"On financial services, UK voices suggest that Brexit does not mean Brexit. Brexit means Brexit, everywhere," Barnier said.

"The legal consequence of Brexit is that the UK financial service providers lose their EU passport. This passport allows them to offer their services to a market of 500m consumers and 22m businesses."

Many banks and major financial institutions are currently preparing contingency plans for a hard Brexit in March 2019.

The Bank of England is reportedly preparing for job losses of around 75,000 in the UK's financial sector, depending on the outcome of the negotiations.

A host of European cities are lining up in expectation of jobs flowing away from London, including the likes of Frankfurt, Paris and Madrid.

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