Germany, Ireland and Luxembourg have emerged as the most popular destinations for financial firms considering where to establish bases elsewhere in the European Union in light of Brexit, S&P Global Market Intelligence data shows.
Other countries that may attract business from the U.K. include the Netherlands, France and Belgium, amid continued uncertainty about firms' future access to the EU following Britain's exit on March 29, 2019.
Britain and the EU have agreed on a draft 21-month transition deal to phase in Brexit, but whether that gives financial institutions more time to prepare remains unclear. The deal will not be binding until both the EU and the U.K. sign a final withdrawal treaty. The Bank of England said it will provide an update on its regulatory approach to Brexit preparations in the week of March 26.
Only eight banks have taken formal steps to seek a new license in the eurozone while four others intend to significantly expand their activities in the region, Sabine Lautenschläger, vice chair of the European Central Bank's Supervisory Board, said in February. Outside the banking space, some firms are also more prepared than others, with Lloyd's of London expecting its Brussels subsidiary to be up and running by the start of 2019.
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