TP ICAP PLC (LON:TCAP) said it currently does not have full ‘passporting rights’ to operate in the European Union after the coronavirus pandemic disrupted the movement of staff to a new broking office in France.
The inter-dealer broker said it does not expect a material impact on its global broking business or its financial results as a result.
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Its UK offices are still serving clients based in some EU member states “where possible” under available temporary permission regimes, existing access rights or under other applicable regulations.
As part of the group’s ‘Brexit readiness plan’, TP Icap had planned to set up a new authorised subsidiary in Paris to carry out all its broking business in the EU’s 27 member states.
But the FTSE 250-listed group said in a statement today that it has not yet been possible to complete the relocation of staff nor to hire local brokers in the EU-based offices as planned, which it blamed “partly” on lockdowns and travel restrictions.
Management remains committed to completing the staffing of the France office “at the earliest opportunity” and believes this “will ensure a robust and sustainable future operating platform for servicing EU 27-based clients”.
However, it was acknowledged that with no formal financial services deal agreed between Westminster and Brussels, “the regimes for the cross border provision of financial services from the UK to the EU 27 may evolve further during 2021”.