Deloitte comments on the implications of Brexit on banks

Vishal Vedi, banking partner at Deloitte, said:

“A number of banks took significant steps to prepare and contingency plan for the potential implications before the Brexit vote. This included looking at the immediate aftermath of a Leave vote, as well as the longer term implications. Banks, however, need to move quickly to get their more detailed planning underway.

“Managing the implications of Brexit will involve large and complex, multi-year exercises, focussing on market access, freedom of movement, how legal entities are structured, where and how business is conducted, and how operations and governance are structured. Waiting until Article 50 is triggered, let alone until exit negotiations are closer to being finalised, risks being too late given the possible scale of change some banks will have to deal with and the lengthy timeframes involved. Banks will need to broaden their planning and preparations to ensure they are ready and able to act according to how the situation develops.

“For those banks without plans, they need to do an impact analysis now to understand the consequences. This will determine the activities that have to happen immediately and which projects can be put on the shelf until everything stabilises. This impact analysis is also necessary to support discussions with all the key stakeholders who will be interested in what Brexit means for a particular bank.”

End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

Member of Deloitte Touche Tohmatsu Limited.