A huge part of London‘s draw as an international financial hub is undeniably the allowed access to the internal market of the wider European Economic Area, also commonly referred to as the EEA.
As new alliances arise and old territorial holdings fall, what does this mean for such a business center?
Licenses issued by the UK, when used as passports, allow foreign financial firm to lend their financial expertise throughout the EEA. However, if the UK cannot secure a means to stay within the internal market, the UK will inevitably lose these rights/freedoms of operation.
Of course, this internal market is navigated via a strong network of rules and regulations. These formalities permit access to other EEA member states ONLY if a firm has obtained the proper license in one of these member states.
This particular system of complete, unrestricted access based on a single passport is specific to the EEA and as a result, if the UK were to leave the EEA, the results would be disruptive to say the least.
Additionally, an extra license would be absolutely necessary for all forms of cross-territory services, such as the establishment of a new branch or subsidiary across these national boundaries/borders. This would make the UK become the third country that now needs to find a point of access through which to conduct business in the EEA. Moreover, EEA financial institutions would be required to apply directly for a license to enter the United Kingdom!
Finally, be sure to message us at ePassportPhoto to get quick guidance from our representatives!