Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Banking > The impact of Brexit on foreign banks in the UK – A report by the Association of Foreign Banks and Norton Rose Fulbright

The impact of Brexit on foreign banks in the UK – A report by the Association of Foreign Banks and Norton Rose Fulbright

Published by Gbaf News

Posted on September 21, 2018

3 min read

Last updated: January 21, 2026

Foreign banks in the UK assess Brexit impact on regulations and recruitment - Global Banking & Finance Review — This image represents the insights from the Association of Foreign Banks and Norton Rose Fulbright's report on Brexit's impact on foreign banks in the UK, highlighting regulatory concerns and recruitment challenges.

Second joint report from the Association of Foreign Banks and Norton Rose Fulbright revisits the foreign banking sector’s sentiment on Brexit
With less than 200 days until the UK’s departure from the EU, foreign banks operating in the UK comment on the lack of certainty over a post-Brexit regulatory framework
Banks also express their views on recruitment challenges following the Brexit vote
Respondents sought clarity as to when the transition agreement would be placed on a statutory basis
Foreign banks also commented on the importance to their business of London remaining a major international financial centre

The Association of Foreign Banks (AFB), in conjunction with global firm Norton Rose Fulbright, has launched its second report on the impact of Brexit on the foreign banking sector in the UK.

A wide cross-section of AFB members, including senior executives from nearly 60 foreign banks, responded to a survey as part of the joint Brexit report which focuses on three headline areas:

The UK’s post-Brexit relationship with the EU
The immigration impact on staff
Business confidence in the UK

The report also explores the future of banks’ global booking models, the cost of preparing for Brexit, and banks’ engagement with regulators on Brexit.

The report is further split into three sections to reflect AFB structures:

UK branches of EU banks
UK branches of non-EU banks
UK incorporated subsidiaries of foreign banking groups

The lack of certainty over the post-Brexit regulatory framework between the UK and EU is a major concern. The deep interconnectedness of the UK’s and EU27’s financial markets mean that a robust and comprehensive passport alternative is widely sought by the foreign banks. However, many respondents felt the current EU equivalence framework would not be an appropriate basis on which foreign banks’ UK operations should be based. Likewise, banks want to ensure that cross-border financial contracts are serviceable post-Brexit.

Banks also highlighted challenges concerning their ability to recruit and retain staff in view of the lack of clarity around the post-Brexit UK immigration system.

John Treadwell, Chief Executive Officer of the Association of Foreign Banks, commented: “Although foreign banks have expressed their continuing support for London as a location for business and as a major international financial centre, they have stated their desire for the clarity necessary to determine how they carry out their business going forward. Whilst there were some concerns regarding recruitment challenges as a result of the Brexit vote, the majority have not experienced any difficulty in this regard; however, some banks continue to face recruitment challenges as a result of other issues, e.g. Tier 2 visas over-subscription.”

Charlotte Henry, a financial services partner at Norton Rose Fulbright, commented: “Whilst most major financial institutions have well advanced Brexit contingency plans, many express concerns over the lack of clarity over what will replace the existing UK-EU regulatory passport. Brexit has already had a disruptive impact on banks, many of whom are making changes to their operating models. It remains to be seen whether banks make more profound changes to their booking model strategies in response to the final post-Brexit UK-EU regulatory framework.”