Brexit: risk or opportunity for financial institutions?

Brexit: risk or opportunity?

Understanding your exposure

Brexit will have far-reaching consequences for companies in the financial sector.

On 29 March 2017, the UK government invoked Article 50 of the Treaty on European Union, providing formal notification of the UK's desire to leave the EU. When the UK leaves the EU on 29 March 2019 this will have far-reaching consequences for companies in the financial sector.

We believe that Brexit is going to have serious implications for financial institutions on both sides of the UK/EU split if there is no provision made within the exit terms to allow some form of mutual market access. While the issue is most acutely felt by UK financials (and non-EU financials in the UK), with a need to secure an EU platform in order to retain passporting rights, European financial institutions that access the UK through a branch or on a freedom of services basis also need to consider their ability to continue servicing their UK client base post Brexit.

If you are considering relocating to the Netherlands, you may have the following questions:

Regulatory

  • What is the general attitude of the regulator – risk- or rule based?
  • What local presence would be required?
  • What is the timeline for the authorisation process?
  • Is outsourcing accepted by the regulator?
  • How to deal with the Dutch 20% bonus cap?

Infrastructure

  • How does the Dutch financial sector look like - facts & figures?
  • How attractive is Amsterdam as financial centre – strategic location, business services sector, digital accessibility, labour force, quality of life, education, office locations?

Tax jurisdiction

  • What are the corporation tax and specifics of Dutch fiscal law?
  • How to make use of the participation exemption and 100% capital gain?
  • How to apply the 'fiscal unit'?

If you are a Dutch (or EU based) financial institution, you may have the following questions:

  • What contingency planning and scenario’s do I need to make to meet the Prudential Regulation Authority (PRA) deadline of 14 July 2017?
  • What regulatory approvals are required to continue to do business in the UK after 29 March 2019?

Our capability
We realise that the exposure to Brexit varies per financial institution. Whether risk or opportunity, KPMG can help you assess the impact. KPMG in the Netherlands has over 500 Financial Services (FS) professionals (Audit, Advisory and Tax) and is connected to our global network of member firms. Our dedicated FS team consists of many industry specialists, former DNB- and tax authority staff.

Key contacts
Please contact Cuno van Diepen, director KPMG Advisory and NL Brexit coordinator for financial institutions, for more information: tel. +31 (0)6 5120 5444

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