Tier-one investment banks in the City have been planning for a hard-Brexit since mid-2016, while a few started even prior. Now with just six months remaining until we actually leave the EU, albeit without a deal, are firms comfortable with their Brexit contingency execution?
Most firms have identified their European client population that will be affected post-Brexit and filed regulatory licensing applications with national regulators of the EU27. A few are now in implementation mode with development of new system architecture in full swing, while some are waiting to act, perhaps due to cost pressures and other ongoing regulatory projects.
Brexit project leads across firms face the dilemma of having a fully operational entity in place prior to March 2019, but on the other hand, are aware that a transitional deal or a deal giving enough access to the single market post-Brexit could mean unnecessary effort. The only thing certain at this point is the tremendous uncertainty leading to March 2019 and firms are bracing for all eventualities.
Has your firm prepared for the challenge ahead and made adequate contingencies for a post-Brexit world?
Discover more of Deloitte's Brexit analysis.
While there are bullish voices in the City, the short term impact of no deal poses risks that are difficult to quantify and best avoided.