EU looks to close Brexit escape route from ECB supervision
Changes to capital regulation would stop national rulebook arbitrage deployed post-Brexit
Draft capital rules placing new restrictions on cross-border trading into the European Union could put an end to a strategy that foreign banks have used to avoid stringent direct supervision by the European Central Bank.
A regulatory source at a global investment bank says his firm sought to transfer as few assets and trades as possible into the EU post-Brexit, to stay below a threshold of €30 billion assets in the EU – one of the criteria for being subject to the ECB’s single supervisory
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