Large international banks look to Paris in wake of Brexit

French regulator warns of mounting competition between countries and regulators as large banks look to depart from London.

A French regulator has said large international banks have already undertaken due diligence to set up subsidiaries in Paris, following the UK’s EU referendum result.

Speaking to BBC Newsnight, Benoit de Juvigny, secretary general at financial watchdog, Autorité des Marchés Financiers (AMF), explained many companies have informally inquired about setting up in Paris and leaving London.

“But in other cases, especially regarding large international banks… they are already taking real due diligence and we’ve received a lot of practical questions regarding the way they are going to be managed, from our perspective, their relationship with the French regulator,” he added.

Juvigny added that he is very interested in doing business with new British financial entities and if he could do more business with them, he would “be very pleased”.

He said the AMF will also likely expand in the wake of Brexit to deal with the demand from companies looking to move Paris.

Juvigny also described the process for companies as a “welcome challenge”, but a dangerous one because “we could see some kind of new competition between different countries and different regulators.”  

BBC Newsnight reported several countries, including Frankfurt, Dublin, Madrid and Amsterdam are also actively pursuing financial businesses based in London. 

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