LONDON – British broker TP ICAP said on Monday it could not serve some customers in the European Union for the time being as COVID-19 has delayed the completion of its new Brexit hub in Paris.
TP ICAP announced this month that regulators would allow it to continue serving EU customers from London while preparations in France were completed after the UK’s transitional arrangements after leaving the EU on December 31st.
The EU declined to allow UK financial firms direct access to the block as of January 1, which means they would need branches or subsidiaries in the EU to continue serving customers there.
TP ICAP said that since their statement earlier this month, French regulators had stated that brokers who want to provide investment services not only need to have a unit in the block, but must also be adequately staffed.
“However, partly due to the exceptional circumstances surrounding the COVID-19 pandemic, it has not yet been possible to complete the relocation of employees to the EU 27 or the hiring of brokers in TPIE’s EU offices on site as soon as possible originally planned, ”said the company.
TP ICAP announced that it would complete the relocation of staff to the EU27 and recruitment of local staff « at the earliest possible date » but did not announce a completion date.