UK-based banks looking to continue doing business in the euro zone after the Brexit transition period must move staff to the continent and not use the pandemic as an excuse to avoid relocations, the ECB said on Wednesday.
“Banking Supervision has provided flexibility where required, notably to account for the impact of the lockdown measures and travel restrictions on the relocation of staff,” the ECB said in a supervision newsletter. “No additional flexibility is foreseen in principle.”
It added that remote working arrangements do not change its requirement to relocate staff to the EU.
The ECB, said that lenders operating in the bloc must move sufficient capital, staff and management expertise to ensure the sort of physical presence required for prudent risk management.
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