ECB Reminds Brexit-Hit Banks That ‘Empty Shell’ Offices Won’t DoBy
Special attention will be paid to compliance with local rules
ECB preparing for banks to start implementing Brexit plans
The European Central Bank warned London-based banks it will be paying “special attention" to their relocation plans to avoid the establishment of any empty shell offices inside the European Union after Brexit.
The ECB said the focus would now shift from preparatory work to the implementation of policy as the clock runs down to Britain’s formal exit from the trading bloc at the end of March 2019, according to a list of the banking supervisor’s priorities for next year published Monday.
The central bank “will continue to assess banks’ plans to relocate activities from the U.K. to the euro area, including applications for the granting of banking licenses,” the regulator said. “Special attention will be paid to compliance with the agreed policy stances, especially to avoid the establishment of empty shell institutions.”