19 April 2017
By Rachel Kent and Angela Greenough
ESMA's review may affect firms intending to rely on outsourcing or delegation to minimise the business impact of the loss of passporting.
In a speech that was ostensibly on the progress of the Capital Markets Union, Steven Maijoor, the Chair of the European Securities and Markets Authority ("ESMA") announced, that ESMA is planning possible measures to avoid a regulatory "race to the bottom," in which EU member states relax their oversight of regulatory standards in order to attract relocating UK businesses. This comes as UK-headquartered firms consider their post-Brexit options. It particularly impacts those planning on retaining substantial operations and facilities in the UK by outsourcing or delegating to the UK from a subsidiary authorised within the EU to service EU business.
Industries: Financial Institutions, Insurance
Jurisdictions: United Kingdom
Services: Financial Services