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| Brexit: Banks in 'advanced talks' over mass move to Paris, says French regulator | Brexit: Banks in 'advanced talks' over mass move to Paris, says French regulator |
| (about 2 hours later) | |
| Leading international banks based in the UK are in advanced stages of planning to shift some of their operations to Paris as London braces for the impact of Brexit, France's chief financial regulator has said. | |
| Paris is among a number of European cities seeking to woo firms considering a move away from London to maintain their access to EU markets, and faces competitions from Dublin, Frankfurt and Luxembourg, among others. | Paris is among a number of European cities seeking to woo firms considering a move away from London to maintain their access to EU markets, and faces competitions from Dublin, Frankfurt and Luxembourg, among others. |
| Benoit de Juvigny, secretary general of Autorite des Marches Financiers (AMF), told the BBC that "large international banks" based in London have conducted due diligence - the process of close scrutiny that large companies go through prior to making a major deal - to move operations to the French capital. | Benoit de Juvigny, secretary general of Autorite des Marches Financiers (AMF), told the BBC that "large international banks" based in London have conducted due diligence - the process of close scrutiny that large companies go through prior to making a major deal - to move operations to the French capital. |
| "In some cases I would say we are still at the level of inquiries or informal inquires by consultants, by lawyers and so on," Mr de Juvigny said. | "In some cases I would say we are still at the level of inquiries or informal inquires by consultants, by lawyers and so on," Mr de Juvigny said. |
| "But in other cases, especially regarding large international banks, it's a normal informal inquiry but they have been undertaking due diligence, and we are receiving lots of practical questions regarding the way they are going to be managed from our perspective, from their relationship with the French regulators," he addd. | "But in other cases, especially regarding large international banks, it's a normal informal inquiry but they have been undertaking due diligence, and we are receiving lots of practical questions regarding the way they are going to be managed from our perspective, from their relationship with the French regulators," he addd. |
| And it's not just banks. | And it's not just banks. |
| De Juvigny added that "many other companies" have started to consider Paris as a base for their EU operations after Brexit is triggered. | De Juvigny added that "many other companies" have started to consider Paris as a base for their EU operations after Brexit is triggered. |
| UK banks fear that a hard Brexit will result in the UK leaving Europe’s single market and therefore the loss of crucial passporting rights, which allow them to sell their services freely across the rest of the EU and give firms based in Europe unfettered access to Britain. | UK banks fear that a hard Brexit will result in the UK leaving Europe’s single market and therefore the loss of crucial passporting rights, which allow them to sell their services freely across the rest of the EU and give firms based in Europe unfettered access to Britain. |
| The loss of these rights could be devastating to the City of London as nearly 5,500 firms registered in the UK use passporting rights to operate in other countries. | The loss of these rights could be devastating to the City of London as nearly 5,500 firms registered in the UK use passporting rights to operate in other countries. |
| Last week, Cyril Roux, the deputy governor of the Central Bank of Ireland, said that “several” UK based firms have started the application process to be authorised in Ireland. | Last week, Cyril Roux, the deputy governor of the Central Bank of Ireland, said that “several” UK based firms have started the application process to be authorised in Ireland. |
| Brexit Secretary David Davis, last week, revealed the Government is potentially willing to pay the EU in return for the UK gaining access to the single market. | Brexit Secretary David Davis, last week, revealed the Government is potentially willing to pay the EU in return for the UK gaining access to the single market. |
| It is the first time any minister has admitted Theresa May’s administration is open to the idea of paying Brussels to secure access to the trading bloc for British businesses and immediately led to a surge in the pound. | It is the first time any minister has admitted Theresa May’s administration is open to the idea of paying Brussels to secure access to the trading bloc for British businesses and immediately led to a surge in the pound. |
| Last month, James Bardrick, the UK head of US bank Citi, said the main questions businesses have to answer is how quickly they need to act on contingency plans aimed at protecting their businesses should the UK leave the single market. | Last month, James Bardrick, the UK head of US bank Citi, said the main questions businesses have to answer is how quickly they need to act on contingency plans aimed at protecting their businesses should the UK leave the single market. |