Top Ja­panese bank con­tacts EU clients over Ger­many move due to Brexit fears

Irish Independent - Business Week - - Front Page - Ka­ly­eena Mako­rtoff

JA­PANESE bank­ing gi­ant No­mura has started con­tact­ing clients to trans­fer busi­ness from London to Ger­many as it ramps up prepa­ra­tion for a hard Brexit.

EU clients of its trad­ing unit are be­ing asked to put to­gether pa­per­work that will en­able them to do busi­ness with No­mura’s new Frank­furt en­tity, which was granted a se­cu­ri­ties trad­ing li­cence by the Ger­man reg­u­la­tor in June.

Its new en­tity – which will op­er­ate as No­mura Fi­nan­cial Prod­ucts Europe or NFPE – will have its head­quar­ters in the Ger­man fi­nan­cial hub, with branches in Fin­land, France, Italy, the Nether­lands, Spain and Swe­den.

A copy of the let­ter sent to clients, seen by the Press As­so­ci­a­tion, said: “We are ready to be­gin on­board­ing clients to this en­tity so that we are fully pre­pared in the event of a ‘Hard Brexit’ – ie that the UK leaves the EU on the 29 March 2019 and UK fi­nan­cial ser­vices or­gan­i­sa­tions lose their pass­port­ing rights at that time.

“We recog­nise that tran­si­tional ar­range­ments may ex­tend this dead­line but since it is not yet known how com­pre­hen­sive those ar­range­ments may be, or what ser­vices they will cover, we are mak­ing plans to en­sure that our ser­vice to you can con­tinue with­out dis­rup­tion in any even­tu­al­ity.”

Clients which use its trad­ing ser­vices will have to put to­gether pa­per­work that will al­low them to con­tinue ex­e­cut­ing trades and trans­ac­tions with No­mura.

It is ex­pected that the pa­per­work will then have to go through checks by the bank it­self be­fore the ac­count can for­mally be trans­ferred to Frank­furt.

No­mura said it ex­pects that its EU op­er­a­tions will be ready for trades and trans­ac­tions with clients in the first quar­ter of 2019, but said a for­mal no­tice would be sent closer to the time once a “pre­cise start date has been agreed”.

A spokesman for No­mura con­firmed the con­tents of the let­ter but de­clined to com­ment fur­ther.

It makes No­mura one of the first London-based banks to reach out to clients in prepa­ra­tion for a post-Brexit trad­ing re­la­tion­ship. (Press As­so­ci­a­tion)

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