By Huw Jones
LONDON (Reuters) – More than a thousand banks, asset managers, payment companies and insurers in the European Union are planning to open British post-Bhrexit offices so they can continue to serve UK clients, said consultancy Bovill regulatory Monday.
The new offices and staff will help to mitigate business loss, going the other way as the current direct insurmountable access between Britain and the EU ends in December following the Brexit transition.
As a first step, the companies, which were able to directly serve UK customers directly from their home base, have applied for a temporary permit to work in Britain after 31 January when the United Kingdom leaves the Union, Bovill said, using figures obtained from the British Financial Transport Authority.
“These figures clearly show that many UK businesses see the core of European financial services,” said Michael Johnson, a consultant at Bovill.
Over 300 financial firms in Britain have opened EU hubs to continue to serve EU clients after Brexit, according to a recent survey by New Financial thinkank.
The amount of market access to each other after December is subject to negotiation between the EU and Britain, but it is unlikely that the best case will cover the full range of financial services.
Bovill said that 228 Irish firms had applied for a temporary permit to serve UK clients until they received full authorization for a new UK hub.
Dublin is very popular with insurers and asset managers in the UK who need an EU hub, reflecting the strong ties between the two countries.
Companies from France, Cyprus and Germany applied for temporary permits 170, 165 and 149 respectively, which the consultancy said.
“In practical terms, these figures mean that European businesses will be buying office space, recruiting staff and consulting legal and professional advisers in the UK,” Bovill said.
(Reporting by Huw Jones; Editing by Kirsten Donovan)