In the year since the UK voted to leave the EU, the focus has been on the politics of future trade deals and our relationship with Europe.
But behind the scenes, financial services firms have been setting plans in motion to start grappling with big business decisions on locations and subsidiaries, as well as trying to deal with regulatory, cost and tax implications.
Here is a snapshot of how three major providers are approaching their Brexit workload, and what have they have done so far to prepare for withdrawal from the EU.
Our current intention is to use our existing subsidiary in Dublin (Standard Life International) to service our pensions and savings customers in Ireland, Germany and Austria. We are also looking at various options to ensure our asset management business retains its flexibility to grow and deliver for clients, by setting up or using existing entities in Dublin and Luxembourg, for example. Depending on what arrangements we put in place, it may be necessary to create a small number of roles in Dublin and Luxembourg.
We will review our contingency plans as the negotiations progress. Standard Life is an apolitical company, but where necessary we will contribute to the process to ensure the interests of all our stakeholders are represented.
We have a presence in several global markets and so believe Brexit will not impact us at all, as all our businesses are incorporated locally. The only exception is Ireland, as it operates as a branch subsidiary to the UK, so we are looking to unwind that structure. We also have minimal cross-border selling, so do not expect to be impacted in that way either, though we will have to wait for what the new relationship between the EU and UK looks like to fully understand the implications.
We continue to work with relevant trade organisations to understand and prepare for any implications of the Brexit process which may impact our business or our customers. Since 2012, Old Mutual Wealth has divested from its operations in nine countries in continental Europe and focused on growing the UK business. As such we anticipate limited direct impact on Old Mutual Wealth’s operations.
Where we conduct business in the EU, for example, through Old Mutual International, it is conducted predominantly through subsidiaries which are already incorporated within EU member states, and we expect these businesses to continue operating largely unaffected.