In the aftermath of Brexit vote, the UK-based financial institutions are concerned about losing their passporting rights. France’s regulators attempt to assist companies as AMF prepares for UK Brokers post Brexit. What to expect?
29 September, AtoZForex – Autorité de contrôle prudentiel et de résolution (ACPR) along with the Autorité des marchés financiers (AMF) are preparing to welcome financial institutions that are currently based in the UK but would like to move their operations to France. The ACPR supervises banks and insurers, whereas the AMF controls investments and the securities market. Both financial regulators propose to make the licensing process faster and easier to attract British companies.
AMF prepares for UK Brokers post Brexit: How does the regulator attempt to assist the firms?
Following the Brexit vote, the UK-based institutions may lose their passporting rights that authorize them to run business in other European member states. Hence, AMF prepares for UK Brokers post Brexit with french regulators offer institutions to establish a business in France to protect themselves against this risk. On Wednesday, the regulators released a joint statement saying that they are “getting ready to welcome British-based institutions that wish to locate their business in France.”
According to the statement, the licensing process can be simplified and accelerated for the financial entities that are authorized by the Financial Conduct Authority. The procedure will be performed by using documents available in English. These documents may be forms that were submitted to the regulatory authorities in the home country as well as papers related to a branch whose business will be taken over by the subsidiary firm.
The procedure will be performed by using documents that are already available in English. These documents may be forms that were submitted to the regulatory authorities in the home country as well as papers related to a branch whose business will be taken over by the subsidiary firm.
Furthermore, an English-speaking contact point will be assigned to financial institutions. The contact person will guide the company through the licensing procedure. The new fast track is available for investment and insurance companies, payment institutions with the exception of credit providers.
France as a top destination for financial companies
Together with establishing the accelerated process for licensing, the AMF is establishing a faster procedure for FinTech and managements firms from London. The regulator’s “2WeekTicket” pre-authorisation process permits companies to start opening offices in France in two weeks. This can pose a threat to a rapidly growing British FinTech area.
Since the Brexit vote, french authorities have been initiating various measures to attract UK-based finance institutions. Manuel Valls, Prime Minister of France promised to make the taxation regimes the most favorable in Europe. According to the survey done by CIPD and Adecco, France ranks number one amid the UK companies thinking about the relocation of their business.
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