UK Finance and AFME have today published a joint paper “Impact of Brexit on cross-border financial services contracts”. The paper examines the UK and EU market place for cross-border provision of financial services and the potential impact on the existing stock of cross-border contracts.
It identifies key issues around contractual uncertainty resulting from the UK’s exit from the EU in March 2019 and suggests potential ways of addressing these. This includes the need for an agreement to enable existing contracts to continue and run to maturity.
Commenting on the paper, UK Finance CEO Stephen Jones said: “Contractual uncertainty of crossborder contracts post-Brexit needs to be addressed promptly by all parties to avoid damaging impacts for customers on both sides of the Channel. This issue is wide-ranging and not just limited to banking, affecting cross-border products and services across payments, insurance and investment management services also. Early action is essential to provide clarity that these contracts will continue post-Brexit.”
Simon Lewis, Chief Executive of AFME said: “It is estimated that EUR1.3 trillion of UK-based bank assets are related to the cross-border provision of financial products and services – many of which support EU exporting businesses that are key drivers of growth. EU and UK businesses are increasingly concerned about the potential impact of Brexit on the continuity of their existing contracts. Early action to clarify that these contracts will continue following Brexit is therefore critical. As part of AFME’s factbased pan-European approach, we have come together with UK Finance to highlight the importance of this issue.”
The joint UK Finance and AFME paper “Impact of Brexit on cross-border financial services contracts” identifies the following critical issues:
Alongside a transitional period, early action is required to provide the necessary clarity that these contracts will continue following the exit of the UK and the EU:
Click here to read the paper
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