Brexit: Croatia’s Hanfa to Deregister 800 Firms from UK, Gibraltar

As the European financial market regulators are preparing for 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, the Croatian Hanfa has announced that it is going to remove over 800 companies based in the UK and Gibraltar from its registry.

On Christmas eve, the UK Prime Minister announced the agreement on a Brexit deal between the 27 country bloc and Britain. However, it did not provide enough relief to London’s key financial services industry.

This means the UK companies passporting their licensing rights to offer services in EEA have to acquire a European license or wind up their European businesses after the transition period deadline of December 31, 2020.

Hanfa detailed that companies to be deregistered include 167 UK and 3 Gibraltar-based companies offering financial services, 59 EU fund management companies, 110 UK-based (re)insurance companies, 5 Gibraltar-based (re)insurance companies, 464 insurance distributors from the UK, and 1 insurance distributor from Gibraltar.

“The United Kingdom of Great Britain and Northern Ireland (UK) has no longer been an EU Member State as of 1 February 2020 and will become a third country with respect to EU Member States as of 1 January 2021,” Hanfa stated.

“There are no entities from the UK or Gibraltar providing services in the territory of Croatia through a branch, so Hanfa will not need to update such registers.”

A Blow to Financial Services

The financial markets of the UK and Europe are interconnected. So, the ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term and the FCA are taking steps for a smooth transition of businesses by issuing draft rules on several financial activities.

Meanwhile, many brokers are approaching EU countries to gain local licenses to continue their European operations while many others have shut down their operations.

Interactive Brokers recently established two new European entities, one in Hungary and the other in Ireland, and has already started to migrate European clients from its UK entity.