Reuters - Large investment banks subject to tighter controls in the EU after Brexit

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Large investment banks such as Goldman Sachs and JPMorgan will be subject to tighter controls in the European Union after Britain leaves the bloc, under EU draft proposals meant to prevent them exploiting laxer rules in EU member states.

Reuters reports that big broker-dealers and investment firms are already required to hold significant capital buffers against the risk of failure, but EU regulators fear that, when they move some of their business from London to the EU, they could seek out jurisdictions with lower capital requirements.

To prevent this, the European Commission is proposing that supervision of big investment banks operating in the EU should be transferred from national authorities to the European Central Bank, according to draft documents seen by Reuters.

Many of them are planning to relocate part of their business from the EU’s current financial hub, London, to other member states to maintain secure access to the bloc’s market after Brexit. 

Hit the link below to access the complete Reuters article:

London-based investment banks to face closer EU scrutiny - documents

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