ECB warns UK firms that they have less than five months to apply for EU licences.

According to a report in the Financial Times, ECB Board Member Sabine Lautenschläger said: “Any bank wishing to relocate from the UK to the euro area should really have submitted its license application already. But if it hasn’t, it should do so by the end of the second quarter of 2018 at the latest.”

Meanwhile, Reuters reports that the EU’s Brexit negotiator Michel Barnier reaffirmed after a meeting at the European Central Bank on Wednesday that the European Union wanted to maintain full control over financial regulation in the bloc after Brexit. Barnier tweeted “EU financial services market is built on a single rulebook and integrated supervision. Future EU-UK relationship must respect EU regulatory autonomy.”

The UK have been looking at ways in which the EU and Britain might recognize each other’s regulations in order to limit the impact of Britain’s exit from the bloc next year. But EU officials are concerned that such arrangements could weaken the EU banking supervision system and have insisted that any relationship with Britain must not dilute its control.

Dr. Ray NultyComment