The Brexit clock is ticking. With now only one year to go, there’s still a lot of uncertainty surrounding Brexit and what it means for UK businesses.
Simon Black, CEO of PPRO Group shared his thoughts of the transition deal and what Brexit means for the financial industry:
“Last Month marked a year until Brexit is officially implemented, but there is still a way for the UK Government to go in negotiations to provide some measure of continuity and certainty for the markets. Clearly, everyone understands that after the likely transition, the UK is leaving the EU.
But it has also been obvious for some time that the final departure wouldn’t be completed by March 2019. That being the case, businesses have had to assume that either there would be a transition, probably involving the UK as a rule-taker within the single market and the customs union, or Britain would crash out of the EU without a deal. Companies, including fintechs and other financial firms which rely on having access to EU markets through “passporting rights”, (the free movement of services within the European Union) cannot afford to wait any longer to see what the final EU-UK relationship will look like, before deciding on whether to move. Whilst of course we will remain in the UK post-Brexit, we have been contingency planning since before the referendum and are now advanced with our operation in an alternative EU jurisdiction, Luxembourg, to future proof the company, against a worst-case scenario.
Financial Services is one of the biggest and most important sectors for the UK. If passporting can continue it will guarantee much of the UK’s economic growth. PPRO Group processes many kinds of payments for consumers and businesses. As a financial institution we need a financial licence with permission to operate across the European Union. Unless passporting financial services continues after Brexit day, we will be forced to fully activate our operation in Luxembourg and transfer much of our business out of the UK”.