The United Kingdom’s impending Brexit will affect hundreds of financial services entities working in Australia, according to an analysis released by the Australian Securities and Investments Commission (ASIC).
According to ASIC, it knows of 298 UK firms operating in Australian and has undertaken a review of potential impacts on licences and exemptions issued under the Australian regulator regime.
It said that of these firms, 285 UK foreign financial services providers operated in Australia under an Australian financial services licensing exemption and that, in addition, five UK market operators hold an Australian market licence and six operate under exemption notices.
The regulator said that one UK firm holds an Australian clearing and settlement facility licence and one UK firm holds an Australian Financial Services Licence.
It said that ASIC was working with the Reserve Bank and the Bank of England to ensure business continuity for systemically important Australian firms operating in the UK and that the Australian Securities Exchange [ASX] Group had notified the Bank of England that it wished to enter the UK central counterparty temporary recognition regime and therefore continue to be able to provide clear services in the UK.
ASIC said it had identified a small number of regulatory changes that would be needed and, as necessary, and envisaged completing the steps ahead of the UK’s withdrawal form the EU in a ‘no deal’ scenario.