Financial firms in the U.K. may have to pay the European
Securities and Markets Authority to regulate them should they
do business in the European Union post-Brexit, according to a
proposal floated by ESMA Chairman Steven Maijoor at the ICMA
Annual Conference in Luxembourg on Thursday.
Maijoor said the regulator is considering charging financial
firms from countries outside the E.U. to help cover the cost of
assessing the risks they pose to the region's markets. It
is a very resource-intensive activity, he said,
questioning whether it would be right to rely solely on the
U.K.s Financial Conduct Authority to judge the potential
problems that British firms may create in the European
While Britains exit from the E.U. isnt good for
Europe, its very bad for the U.K., according
to Pierre Gramegna, Luxembourgs finance minister, who
spoke before Maijoor at the conference. Brexit will be
completed in 2019.
It is not a win-win game, Gramegna said.
It cannot be mutually beneficial.
Luxembourg is among the European cities that may absorb
financial talent from London as banks and asset managers
consider leaving London due to Brexit-related challenges.
Frankfurt, Paris and Dublin are also in the mix to become
stronger financial hubs. For example, BlackRock, the worlds largest asset
manager, is looking at moving London staff to Paris, according
to Christian Noyer, the former Bank of France governor. Noyer
is tasked with bringing jobs to the French capital as cities in
the E.U. compete for financial jobs leaving the U.K.
As concerns rise surrounding Brexit, Gramegna sought to calm
banks and fund managers at the ICMA Annual Conference. After
all, financial firms outside the E.U. do have relationships
with the trading bloc.
Take Switzerland, he said. Does that
prevent the major Swiss banks doing business in the European
Union? Not at all. My comment on all of this is lets