Negotiations between the UK government and the European Union are under way, following the triggering of Article 50 in March of last year. However, many key questions on the future relationship between the UK and the EU remain unanswered.

This report by Alvarez & Marsal assesses the impact of Brexit on Financial Services firms and evaluates their relocation options.

Key points include:
 

• Many companies have decided that the prudent planning assumption is that the UK will become a third country, meaning UK and EU passporting arrangements will come to an end.
• So far, most firms have reviewed their products and services to determine whether they will (or can) remain in the UK, or whether they may need to move some elsewhere.
• The European Central Bank wishes to ensure that relocations are ‘real’, and not simply an attempt to establish a shell bank, with business continuing to be wholly directed from the UK.
• Transformation programmes in financial services firms are notoriously complex and can take up to four years to complete, which means time is short given the Article 50 negotiation phase lasts for just two years.