Brexit - Implications for MiFID firms

The outcome of the referendum on 23 June has raised a host of questions for MiFID investment firms currently located in the UK on what will happen following the UK’s exit from the EU. It currently appears that the next 6 months and beyond will bring a period of substantial uncertainty in relation to the continuation of the financial services passporting regime currently enjoyed by UK based MiFID firms throughout the EU/EEA.

While the full implications of Brexit will depend on negotiations between the EU and UK, it is foreseeable that some UK MiFID firms may seek to migrate operations from the UK to elsewhere in the EU. There have already been press reports that some UK MiFID firms have begun the process of planning to obtain financial services authorisations and/or licences in other EU/EEA jurisdictions to continue to avail of unfettered access to EU/EEA markets. It is also possible we may see MiFID firms seek to avail of the cross-border merger mechanisms available under EU/EEA law.

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