David Montgomery, Partner and Head of Risk & Regulatory Advisory at EisnerAmper Ireland, shared some thoughts with Jon Marino, a reporter for CNBC.com, on the UK’s EU (Brexit) referendum.
Now that the UK has voted to leave the EU, providing clarity as to their direction of travel (subject to the UK government triggering Article 50), market uncertainty will now focus on how that exit will be negotiated, how long it might take and what will happen in the UK, the EU and global marketplaces over the short and medium terms. While there will be uncertainty and volatility, we expect there to be opportunities for jurisdictions like Ireland to provide market routes for global firms into Europe that have traditionally gone through the UK. Ireland is well placed to support the UK by providing and maintaining a route for UK firms to the EU marketplace with minimal interruption and low frictional cost.
Banks, insurers and investment firms within the UK already have well-developed contingency plans that will now be implemented. The fact that the European Central Bank licenced the Irish supervisory framework for use in their Single Supervisory Mechanism is a strong selling point for the high regard in which the Irish regulatory system is held internationally. This is expected to result in an increase in applications for authorisation to the Central Bank of Ireland, as many such corporates have been examining this possibility for some time while also scouting for office space over the last year.
The article was published on CNBC.com on Friday 24 June. The referendum took place on Thursday 23 June, the result being in favour of leaving the EU (51.9% of the vote with 17.4 million votes). Markets around the world have been shocked by the result. Select here to read about the key considerations for businesses in the wake of the leave result.
To read more about Brexit and to download our Brexit guide please select here.
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