The United Kingdom will leave the European Union on March 29th 2019, followed by a transitional period until the end of 2020. Immediately after the announcement of the outcome of the Brexit referendum on June 23rd 2016, we set up a Brexit Task Force comprising specialists from the Legal, Compliance, Treasury, Corporate Development and UK office. The Taskforce aims to assess the impact of the Brexit on the operational activities of the bank and its clients.
26 Nov 2018
KAS BANK N.V. - Brexit implications and considerations
From a “Whole-bank perspective” the Brexit Task Force has been reviewing the operational impact on KAS BANK via a working party with senior representatives from relevant departments. We are working with the Dutch Central Bank (De Nederlandsche Bank) who have issued a Brexit survey that identifies significant operational matters that need to be addressed via contingency planning. In addition, we are working with its service providers to ensure that all operational and market infrastructure matters are addressed in the coming months so that business continuity can be maintained post-Brexit.
UK Branch - Brexit implications and considerations
From a UK Branch perspective, we have been proactively working with the UK regulators since the referendum and have taken legal advice where necessary. A Brexit Task Force was established in 2016 and since that time the Task-Force has been monitoring the impact on the UK Branch and taking all necessary steps. We have narrowed down the scenarios to:
- 3rd country without a transitional agreement;
- a transitional agreement; and
- the temporary permissions regime which was announced 24 July 2018.
Our assessment is that there will be no impact on the relationship between our UK clients and KAS BANK N.V. post Brexit. This is a result of our impact analysis, discussions with our external advisors and the UK Regulators, PRA and FCA. It will continue to be “business as usual” for our clients and employees and this is due to KAS BANK N.V. structuring its operational hub out of The Netherlands, with the UK Branch acting as a local client facing office.
We are satisfied we have taken all necessary steps to date and will continue to work with the regulators as their requirements become clearer in the coming months. However, we are satisfied that any additional regulatory authorisations will take place within the temporary permissions regime and will not impact our ability to service our clients.
KAS BANK continues to monitor Brexit very closely and it is still evident that there is much to be clarified. As a Dutch bank with a UK Branch we remain committed to all our clients and the markets we service and will take all the necessary steps to ensure that business will not be impacted.
We will provide further updates as and when necessary and when there is clear guidance from the appropriate authorities.