EBA Warns Regulators On 'Empty Shell' Moves To Duck Brexit

Law360, London (October 12, 2017, 5:29 PM BST) -- The European Union banking watchdog warned regulators on Friday against lowering standards and allowing U.K.-based financial institutions to set up "letterbox" companies in the EU as they begin moving operations to the continent to maintain access to the single market after Brexit.

The European Banking Authority used its first official opinion paper on Brexit to say that regulators must not allow banks seeking a foothold in the EU when Britain leaves in 2019 to set up so-called empty shell companies while discreetly keeping their main operations...
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