Moody’s: Passporting Withdrawal ‘Manageable’ for Big UK Financial Firms, If..

One of the three big credit rating agencies has shared an analysis of the prospects for the financial markets sector in a post-Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term world. According to the company’s findings, the big companies in United Kingdom’s financial services industry are not likely to be fatally affected by the prospective loss of passporting rights to the single European market, provided that some conditions are met.

*MOODY'S: LOSING EU PASSPORTING MANAGEABLE FOR RATED U.K. BANKS

— lemasabachthani (@lemasabachthani) September 19, 2016

Moody’s spells out a condition for its prognosis - UK market rules will have to get recognized by the European Union. This latter condition should become a non-issue after the implementation of the MiFID II (Markets in Financial Instruments Directive). The framework is designed to facilitate the recognition of other regulatory frameworks as compatible with the rules for European Union member states.

Join the industry leaders at the Finance Magnates London Summit, 14-15 November, 2016. Register here!

This recognition is key for several industries, which include trading on the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term markets, but is also extending towards investment advice and underwriting activities. Naturally, the biggest banks and financial services firms in the country will be the least affected with the companies already implementing contingency plans.

While the issue of losing access to the single European market has been one of the top policy debates in the UK, the argument that the lack of passporting for Swiss companies hasn't killed the financial industry in Switzerland still stands.

Commenting on the matter, Senior Vice President of Moody’s, Simon Ainsworth, said: “We consider that the equivalence provisions within Mifid II, the complexity of quickly unwinding the status quo and the desire to minimize the initial impact on European-domiciled banks will lead to the preservation of most cross-border rights to undertake business.”

Of course, as usually is the case with opinions, some others disagree:

We're going to hell in a #BREXIT handcart https://t.co/g3cP19X3kI — Simon Gosden (@SimonGosden) September 19, 2016

Earlier in the day, one of the key figures at the European Central Bank, President of the German Bundesbank Jens Weidmann, shared in an interview with The Guardian that the prospects for the loss of passporting access for UK companies are quite real.

Bundesbank head:EU banking “passporting rights tied to the single market" so UK must be at least part of EEA #Brexit https://t.co/nO31zjVrJZ

— Linda Yueh (@lindayueh) September 19, 2016