This would force institutions to either convert their London branches into standalone subsidiaries and to apply for them to be licenced by the Bank of England or shift their operations out of the UK and into the euro area – two immensely costly options, might I add.
But saying that, it is also true that if the UK opts to leave the EU, we will have to wait for the outcome of post-referendum negotiations before anything can really be said on the EU’s passporting regime that will stand up in court.