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European governments have stepped up efforts to grant crucial concessions to UK asset managers to limit the worst effects of a no-deal Brexit. France, Germany, Italy and the Netherlands are among countries that have amended national laws to ensure UK investment companies can still serve foreign customers.
British groups manage at least £1.8tn for clients in the EU and such relationships could be in jeopardy should Britain crash out of the bloc without a deal. Equally the UK government has rolled out its temporary permissions regime, allowing EU managers to continue to sell investment products to UK consumers after Brexit. As the clock ticks, EU27 governments are introducing mirror policies.
This week the Netherlands said it would bring in a temporary permissions regime for Brexit. This will allow UK managers to continue to sell products to Dutch institutional investors when they lose passporting rights, which enable managers to provide services in the European Economic Area.
France recently published a Brexit law to let UK banking and finance companies to continue to operate if there is a no-deal Brexit. Italy has said it will adopt measures to ensure that UK financial institutions can continue to conduct business in Italy under the current rules. Germany, Finland and Luxembourg have each drafted laws to make it easier for British financial services companies to continue to work in the countries after March 29.
The FCA, signed memoranda of understanding with European watchdogs on February 1, meaning that delegation arrangements can continue.
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