Businesses on both sides of the Channel are unable to make any longer-term plans as long as these conditions haven’t been clarified. On the other hand, location shifting takes time and encourages banks to react well ahead of political certainty.
This reform forms part of the current broader overhaul of the global regulatory system which aims to address the too-big-to-fail problem of systemically important financial institutions, building resilient financial institutions, reducing the opacity of over-the-counter derivatives markets, mitigating the impact of shadow banking on financial stability, enhancing financial benchmark transparency, and promoting the convergence of accounting standards.