Brexit – City dealmakers heading for the EU – Bloomberg

The new rules for the bankers who made London financial capital of Europe are still uncertain after Brexit, but one outcome is already clear: a stream of dealmakers across the English Channel.

While thousands of traders and salespeople have already made the move, the next wave is likely to include the high-flyers who advise on strategy, mergers and capital raising, say more than a dozen officials at global institutions. Goldman Sachs for one, is moving senior investment bankers out of London to the continent.

“I would expect that 3,000 to 4,000 more investment bankers, especially industry-focused specialists and debt and equity issuance advisers, will have to leave London and come back to Europe,” said Andreas Halin, founder of Global Mind Executive Search Consultants GmbH, a Frankfurt-based firm that specializes in the sector.

The prospect of losing a highly paid cadre of taxpayers is particularly bad news for the U.K., since it relies so much on financial services for revenue. The industry employs more than one million people, makes up about 7% of the economy, and accounts for more than a 10th of all tax revenue.

https://www.bloomberg.com/news/articles/2021-01-15/brexit-is-driving-top-dealmakers-out-of-london-and-into-the-eu

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Post-Brexit UK firms hit MiFID II rules on ‘reverse solicitation’

Some questionable practices by firms around reverse solicitation have emerged. For example, some firms appear to be trying to circumvent MiFID II requirements by including general clauses in their Terms of Business or through the use of online pop-up “I agree” boxes whereby clients state that any transaction is executed on the exclusive initiative of the client.

ESMA has reminded firms that “where a third-country firm solicits clients or potential clients in the Union or promotes or advertises investment services or activities together with ancillary services in the Union, it should not be deemed as a service provided at the own exclusive initiative of the client”. This is true “regardless of any contractual clause or disclaimer purporting to state, for example, that the third country firm will be deemed to respond to the exclusive initiative of the client”

https://www.esma.europa.eu/sites/default/files/library/esma35-43-2509_statement_on_reverse_solicitation.pdf

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Piraeus Bank announces MiFIR SI Venue LEI change – Bonds

From 17/01/2020 to 11/01/2021 the LEI for Piraeus Bank was M6AD1Y1KW32H8THQ6F76 … this has now been updated to 213800OYHR1MPQ5VJL60

Last ESMA update12/01/2021

  • MIC : PBGR
    LEI: 213800OYHR1MPQ5VJL60

Entity Name: PIRAEUS BANK S.A.
Service Name: BOND (Bonds)

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City of London stumbles through first week of Brexit – FT

When veteran City dealmaker Rich Ricci returned to work on Monday, the consequences of a Brexit deal that largely excluded financial services were immediately felt across his different businesses.

Panmure Gordon, the UK-focused stockbroker he runs, was faced with restrictions on dealing with EU clients from London, while the stock exchange he part owns saw almost all euro-linked share dealing move to Paris on the first trading day since the UK left the EU single market.

http://www.ft.com

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Brexit – City ‘Sacrificed for a bunch of fish’ – Independent

On 4 January – the first trading day of 2021 – billions of euros of business left the UK for the European Union. Some €5bn of trading in shares ranging from French banks to German car companies departed London and re-appeared in financial centres in mainland Europe such as Paris and Amsterdam.

The shift was a direct consequence of EU financial regulations that stipulate that trading in EU companies (the likes of Volkswagen, Airbus and BNP Paribas) when it is done by EU firms must be transacted within the bloc.

The Christmas Eve Brexit deal agreed between the EU and the UK specifically excluded financial services, yet the two sides did agree to aim for a Memorandum of Understanding (MOU), by March 2021, for establishing a framework for regulatory cooperation in this area.

Broadly speaking, the most the City can aspire to now is “equivalence” for domestic UK financial regulation from the European authorities, which would allow EU firms to continue their usual operations in the UK.

The EU has equivalence deals for some areas of financial services with Switzerland, the US and Japan, so it would seem reasonable for the UK to expect similar. Yet the problem with equivalence is that it is inherently precarious.  Under EU law, equivalence can be unilaterally withdrawn by Continental regulators with just 30 days’ notice. This is not a purely hypothetical danger. Brussels deliberately allowed equivalence for Switzerland to lapse last year, preventing EU firms trading on the Swiss stock exchange.

British financial firms warn this threat is like a “sword of Damocles” permanently hanging over them, which will deter investment and hiring in the UK

.https://www.independent.co.uk/news/business/analysis-and-features/city-of-london-brexit-financial-b1784497.html

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