TP ICAP said it could no longer serve some clients in the European Union for now because of delay in finishing its Paris unit. The UK broker blames Covid-19 pandemic for the delay.
The company said earlier this month that regulators would allow it to continue serving customers from the EU from London office while it is finishing preparations in France after the transaction arrangements of Britain’s departure from the EU came to an end on 31 December 2020.
The EU denied direct access to the block to British financial firms from 1 January 2021. Thus, if they want to continue serving clients in the EU, they need branches or subsidiaries there.
TP ICAP said that since making its earlier statement in January, French regulators had said that a unit in the bloc is not sufficient for brokers to provide investment services, they also need to be sufficiently staffed.