Brexit: EU launches crackdown on ‘desk mapping’ in the City

first_img Bankers are unimpressed by the prospect of leaving London, with some quitting rather than leaving the UK. Share The primary objective is to reduce the number of EU-based clients that are solely or predominantly served by units and teams in the City and Canary Wharf, All 27 EU member states have to sign off on the Memorandum of Understanding, with this process reportedly yet to begin. Brexit: ECB to crack down on ‘desk mapping’ in London to drive more bankers and capital to the EU Bankers are unimpressed by the prospect of leaving London, with some quitting rather than leaving the UK. Also Read: Brexit: ECB to crack down on ‘desk mapping’ in London to drive more bankers and capital to the EU Tags: Brexit Most of these banks have continued serving their EU-based clients from their large offices in London. Moreover, restrictions in movement on both sides of the Channel, as a result of the pandemic, complicated any further job moves and relocation plans. Show Comments ▼ whatsapp JP Morgan, Citi and Goldman Sachs The bank believes that currently, too many bank rely too heavily on their London units while serving clients across the EU, thereby escaping regulatory scrutiny and oversight, according to a Bloomberg report, citing anonymous sources to the ECB. 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The ECB is specifically targeting JP Morgan, Goldman Sachs, Citibank, Morgan Stanley and other U.S. investment banks, several European media report today. “The desk-mapping exercise is at an early stage and still ongoing. Thus the ECB has not yet given feedback to individual banks on its outcome,” an ECB spokeswoman reportedly said. For international banks wanting to do business in the EU post-Brexit, the use of blank typos would reportedly no longer be allowed. center_img The agreement will outline how financial services regulators in the UK and EU will maintain open lines of communication when making decisions, but will stop short of giving City of London firms renewed access to EU markets. Despite the noise, the modest number of relocations have, so far, not threatened London’s status as a global financial powerhouse. Still no financial services deal The ECB’s move comes only weeks after news that France is working to block a post-Brexit financial services pact between the UK and the EU over the ongoing row about fishing rights. The issue blew up earlier this month when more than 60 French fishing boats created a blockade around the island of Jersey, leading Boris Johnson to send two Royal Navy gunboats to patrol the protest. French president Emmanuel Macron sent his own naval ships in retaliation. Bankers are unimpressed by the prospect of leaving London, with some quitting rather than leaving the UK. Also Read: Brexit: ECB to crack down on ‘desk mapping’ in London to drive more bankers and capital to the EU The central banking authority plans to scrutinise and crack down on so-called ‘desk mapping’ – or ‘back-to-back booking’ – to determine whether banks’ key staff, capital and book trades used by EU-based clients are not based outside the bloc. Bankers are unimpressed by the prospect of leaving London, with some quitting rather than leaving the UK. Also Read: Brexit: ECB to crack down on ‘desk mapping’ in London to drive more bankers and capital to the EU The UK and EU announced in March that it had drafted a regulatory co-operation agreement, known as a Memorandum of Understanding, on financial services, however it is yet to be signed or made official. The ECB, however, has told banks it will no longer allow the ongoing pandemic as an excuse to delay post-Brexit implementation plans. Thursday 27 May 2021 4:54 pm French officials, however are reportedly trying to stall the signing of the Memorandum of Understanding due to the country’s fishermen finding it difficult to get fishing permits for British waters. Bankers are unimpressed by the prospect of leaving London, with some quitting rather than leaving the UK. Also Read: Brexit: ECB to crack down on ‘desk mapping’ in London to drive more bankers and capital to the EU whatsapp Bankers are unimpressed by the prospect of leaving London, with some quitting rather than leaving the UK. Also Read: Brexit: ECB to crack down on ‘desk mapping’ in London to drive more bankers and capital to the EU The European Central Bank is ramping up efforts to push more management and capital out of the City and Canary Wharf, into the EU. Michiel Willems last_img read more