Menu

TP ICAP to stop serving some EU clients because of delay in completion of Paris unit



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.

Brexit

The company said:

However, due partly to the extraordinary circumstances relating to the COVID-19 pandemic … it has not yet been possible to complete the relocation of staff to the EU 27 or the local hiring of brokers in the EU-based offices of TPIE as quickly as originally planned.

TP ICAP said it would finish the relocation of staff to the EU 27 and the local hiring of personnel “at the earliest opportunity”, but gave no finalization date.

The broker stated that it would continue to provide services to some clients in the EU where possible through temporary permission regimes and existing access rights.

However, TP ICAP said it did not expect a significant financial impact from any “temporary reduction of services” to EU clients.


Read More:

Related News

TP ICAP to stop serving some EU clients because of delay in completion of Paris unit

0
Send this to a friend