Germany also prepares to assist financial entities seeking to exit the UK

Germany also prepares to assist financial entities seeking to exit the UK

- in All News, Featured News, Regulation
germany-bafin

Germany’s Federal Financial Supervisory Authority (BaFin) has set up a designated email for UK-regulated financial service providers which seek to move their registration or operations s in Germany. The move aims to facilitate the relocation of UK-licensed financial entities in the context of Brexit.

The UK voted on 23 June, 2016, to exit the European Union (Brexit). As a result, the future of many financial institutions across the EU, and in the UK in particular, seems unclear. A license issued by UK’s Financial Conduct Authority (FCA) currently provides admission to all countries in the European Economic Area (EEA), but soon FCA license holders will lose access to these markets. As a result, many companies, including forex brokers, are expected to fleet from the country.

Interested entities can send BaFin their enquiries via access@bafin.de or via the contact form available on the regulator’s website. The email will also assist other foreign financial firms, but is particularly aimed at UK-licensees.

The UK is the world’s largest forex hub, accounting for some 37% of the world’s forex trading volumes and a potential change in EU passporting would affect a number of market participants.

Aside from Germany, other countries, including France, Ireland and Spain have also showed interest in taking over FCA-licensees  seeking authorization under an alternative jurisdiction.

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