The UK’s decision to leave the EU may imply that investment firms and other financial institutions based in the UK are no longer able to operate under the EU passport mechanism to carry out any or all their activities in other EU member-states under the freedom to provide services or the right of establishment (i.e. through branches).
In this context, the CNMV is ready to welcome UK-based financial institutions wishing to relocate their business to Spain as a result of Brexit.
The CNMV is determined to contribute to making Spain the most appealing option for investment firms considering a move from the UK to another EU country; to this end, CNMV will implement (i) a special programme to facilitate and guide them through the appropriate authorisation process and (ii) a number of measures to ensure that these firms will encounter a supervisory environment that is welcoming but also sensible and sound.
CNMV’s objective is that other entities (i.e. not transferring from the UK) could also benefit from the aforementioned measures, which should contribute to make the Spanish markets generally more attractive in a context in which new investment projects in the securities industry have less of an incentive to be located in the UK.