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As
Brexit nears, the Dutch authorities processing banking and markets licenses are
starting to feel the heat.
About
fifty (50) banks and other financial institutions are having or have had talks
with the Dutch central bank about setting up shop in the Netherlands, according
to Tobias Oudejans, a spokesman for the institution.
Fewer
than five companies have been granted licences so far, but “we are in
discussion with several tens of institutions” that are seriously considering
new licenses because of Brexit, he said.
He
declined to be more specific on how many companies’ interest has been driven by
the prospect of a no-deal scenario, where Britain’s trade ties would be
abruptly cut off from the rest of the European Union. Prime Minister Theresa
May is campaigning to get British lawmakers to back the divorce deal she struck
with the EU, but the outcome if they vote it down later this month is
uncertain.
“Virtually
every kind of financial institution we supervise in our country is represented
in these talks,” said Mr Oudejans, who commented by email and phone.
Mr
Oudejans declined to be more specific on figures, saying some of the banks,
insurers, investment firms and payment-services companies may ultimately decide
to apply in a different nation to maintain their access to customers in the
European Union.
The
Dutch are set to make solid gains from Brexit. Most major speed trading firms
and the venues they trade upon have chosen Amsterdam as their post-Brexit EU
hub given its central role for market makers of exchange-traded funds and
derivatives.
To
avoid potential disruption from a no-deal scenario, CME Group is moving its
European market for short-term financing to Amsterdam, which is also becoming
the new home of the European Medicines Agency. In the media world, Discovery is
laying the groundwork to move employees and broadcast licenses there should it become
clear that no deal is likely, according to people familiar with the matter.
Some
of the financial entities considering a shift to the Netherlands are partly
regulated by AFM, the Dutch markets regulator.
“In
these cases AFM will handle the application, while we take care of the
prudential side of supervising these entities,” Mr Oudejans said of the central
bank’s role. “While we may be in talks with them, their possible application
will be handled by AFM.”
Regulatory
officers handling the applications are “a lot busier than usual”, he said.
The
AFM said last month it expects more than 20 financial firms - most of them
trading specialists - will relocate from the U.K. to the Netherlands. The
actual number of new arrivals may be even higher, officials said at the time,
since some firms are applying at the last minute or have requests pending.
Any
firm wanting to trade with EU-based clients needs to have a regulated entity in
place before the U.K. formally leaves the bloc on March 29.
Source/Credit:
About
50 financial firms turn to the Netherlands as Brexit looms
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