August 2, 2018
The term Brexit refers to the outcome of the 23 June 2016 referendum when the UK made the decision to leave the European Union (EU). The process of leaving the EU formally began on 29 March 2017, when the British Prime Minister Theresa May, triggered Article 50 of the Lisbon Treaty. From that point, the UK has two years to negotiate the terms of a new relationship with the EU, which should take effect on 29 March 2019.
The Brexit vote will shape the future direction of financial services around the world.
A key aspect in the Brexit negotiations concerns the financial stability, and the need to enable financial markets, and financial market service providers, to continue providing uninterrupted and undisturbed services to their clients, issuers, investors, savers, policy holders and depositors.
Until we have clarity on the outcome of Brexit negotiations, the current assumptions that Pershing envisages that will impact the financial services include, but not limited to:
Until the official date of departure, and throughout the negotiating period, the UK remains in the EU and is therefore bound by EU law and practice.
It is likely to be some time before we receive further clarity on what the eventual UK-EU relationship will be–the final deal and/or the exact nature of transition. Whatever the outcome of the negotiations, operational continuity and resilience is the primary focus for Pershing. However, the UK’s departure from the EU may impact Pershing’s European operations less than some other financial services providers.
As part of BNY Mellon, a global financial institution, and with Pershing EMEA’s strong presence in Ireland, the UK and Jersey, we are ready to play a constructive role during this period: minimising any potential challenge, turbulence and disruption to Europe’s capital markets and to our clients, and supporting our clients as they navigate their own Brexit planning.