Written by: Michael Cole-Fontayn | EMEA Chairman, BNY Mellon
Earlier today, British Prime Minister Theresa May confirmed the UK Government has invoked Article 50, which triggers the beginning of the timeline for the negotiations relating to the UK’s exit from the European Union (EU).
It is important we remain mindful that this is the next step in a lengthy process. Discussions around the future relationship of Britain and the EU will now officially begin and are likely to take a minimum of two years.
For BNY Mellon, we reiterate what we said in June 2016 at the time of the UK’s EU Referendum result. We are confident BNY Mellon’s EMEA operating model offers clients the optionality they are likely to need as we progress through the Brexit process. We have a UK bank, a US institutional bank – with branches in Brussels, Frankfurt and London, and a European bank headquartered in Brussels with an extensive network of branches throughout the EU.
As a global investments company with operations and long experience in both the UK and the EU-27, we are confident we can respond nimbly to any necessary infrastructure change which may be needed as a result of the formal UK-EU relationship and market access protocols negotiations. However, we are not complacent about the detail of what may be required.
We have reviewed our strategies and planned for various possible outcomes, particularly those which depend on any regulatory permissions currently attached to cross-border provision of services. We continue to ensure our infrastructure is fit for purpose, whatever the outcome of the Brexit negotiations.
Many BNY Mellon clients will also be reviewing their own operations against the same changes, and our priority is adapting with them to maintain continuity of service – wherever they need it executed.
Whilst we are unable to predict the specifics of what changes may need to be implemented, we believe we have all of the legal entities, the licences and the talent in the right places across Europe.
We naturally remain in constant communication with all our regulators and our clients to ensure we continue to meet their needs in the developing environment.
More news from BNY Mellon:
Simon Derrick: Brexit details, potential Scottish referendum both impacting sterling (CNBC)