BOE: Banks Can Seek Post-Brexit Authorisation From Jan>

     London (MNI) - The Bank of England sought to get the ball rolling 

on authorisation of overseas banks and insurers post-Brexit, stating 

that they can apply for authorisation from January next year. 

     Firms have repeatedly said time is fast running out before they 

have to trigger contingency plans and the BOE's move is a pitch to try 

and ensure overseas financial service firms will register to carry on 

business here once the UK leaves the EU. 

     With the negotiations with the EU over Brexit ongoing, financial 

sector firms have no legal certainty but the BOE said that they could 

plan on the basis that there will be cooperation between EU and UK 

regulators and regulatory equivalence. 

     There was an agreement this month between the UK and the EU on the 

need to negotiate an implementation period during which firms could 

carry on cross-border activities. 

     BOE Deputy Governor Sam Woods said in letter to financial sector 

firms' CEO's that "We ... expect those negotations to progress early in 

the New Year. In the meantime, firms may submit applications for 

authorisation from January, and we will then review timelines and 

assumptions as the political process moves forward." 

     The clear message is that the BOE and its regulatory arm, the 

Prudential Regulation Authority, want to get the authorisation process 

moving despite the uncertainty over the final shape of any deal between 

the UK and the EU. Around 200 firms could apply for authorisation. 

     The PRA's approach to authorisation is based in part on the 

assumption that there will be regulatory equivalence between the UK and 

the EU. 

     "It is ... premature for the PRA to reach a final view in these 

areas ... However, given progress to date in the Brexit negotiations, 

for the present firms may plan on the assumption that these requirements 

will be met," Woods said. 

e-mail: david.robinson@marketnews.com

[TOPICS:M$$BES]