Brexit - Tomorrow’s financial activities in practical terms within the EU

November 20, 2020
Jean-Pierre Dumazaud,
Xavier Stoclet,
Philippe Chevrier,
Alexandre Milanov,
Etienne Giroux,
Jean-Gael Rousseau,
Yves Robert,
Benoit Creis,
Filiz Alparslan,
Gregory Prouin

The ease with which UK companies in the financial industry will be able to operate within the European Union and EU financial companies in the United Kingdom is expected to be reduced. The European passport, as it currently stands, is not expected to survive Brexit. This has implications not only for UK firms, but also those extra-EU entities that operated in the EU through the United Kingdom.

Given that there is no deal between the European Union and the United Kingdom as of 4 November 2020, fundamental uncertainties remain. This is why financial sector firms must continue to prepare for the conditions under which they will have to operate "the day after", given the scale of the task, even if there is a transition period. With the 31 December deadline looming, the best way to face uncertain prospects is to anticipate all possible outcomes, including the worst case scenario.


Our firm, with dedicated teams that have practical experience of your business can help you structure and continue operating within the European Union and/or the United Kingdom. We can provide you with multidisciplinary feasibility studies setting out your options for the development of your operations in the European Union post-Brexit. Thereafter, we can provide you with a comprehensive service offering if some of your activities or functions are relocated to France.

The following legal, tax, customs and regulatory issues need to be addressed now:

  • Is your specific business likely to be impacted by Brexit and how? Will Brexit simply hinder your operations or could it prevent you from operating in the European Union altogether?
  • How will British banks, asset managers and insurers be able to continue to provide services within the European Union by setting up operations in France?
  • How and why should banks, asset managers and insurance companies belonging to groups from third countries and operating in the European Union out of London have to relocate to the European Union?
  • What are the issues that that will arise in respect of the LMA English law loan documentation in place once the Brexit transition period comes to an end what would be the approach that will be taken by the LMA in its English law investment grade and leveraged facility documentation? 
  • What legal, regulatory and tax instruments should be used to transfer regulated financial and insurance activities from one country to another in a secure and optimal manner?
  • What is the impact on French financial groups, in terms of both business and the organization of intra-group operations and services?
  • How should the transfer of employees be carried out and what are the consequences of such transfer?
  • What needs to be done with respect to the French Prudential Supervisory and Resolution Authority (ACPR) and other financial regulators?
  • What will be the impact in terms of VAT and customs treatment on the various existing flows or flows to be implemented and on the various deliveries of goods and services?
  • What will be the impact in terms of VAT computation and VAT deduction, including potential VAT refunds, in terms of invoicing and compliance work?
  • Will Brexit have any impact not yet anticipated by groups in terms of direct tax, withholding tax, scope of tax consolidation, French CFC rules, etc.?


  • Spinoff of a French branch of a London-based international bank and redeployment of the new French subsidiary as part of a European hub
  • Guidance in the redeployment, within the European Union and particularly in France, of an English captive finance company belonging to a global industrial group • Assistance for the transfer of activities of English management companies’ French branches to the new branches of a company established in the EU (Luxembourg, Ireland)
  • Transfer of activities, functions and client portfolios by UK insurers to French or Luxembourg subsidiaries
  • Closing down of French branches of UK banks and other extra-EU financial institutions operating from a UK platform
  • Assistance to a UK insurer moving to new French premises after having decided to retain some key support activities in France. 
  • Migration of teams (dealers, sellers) originally located in the UK to French and EU based affiliates.

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