Please see below for today’s update on key Brexit news items:

  • The European Securities and Markets Authority (ESMA) has warned that UK firms will not be able to get single market access by setting up ‘letterbox’ entities in the EU. ESMA has alerted national regulators to the risk of companies appearing across the EU, while continuing to delegate key operations to parents in London, and has warned them to effectively supervise any UK firms which relocate. (Independent)
  • The FCA has sent letters to several of the UK’s largest asset management companies requesting detailed information about their Brexit contingency plans. The letter contains 30 questions about the effect of Brexit on asset managers’ business models, including whether UK-based companies plan to relocate operations to the EU. This follows news that several fund companies plan to set up new entities or strengthen their existing presence in mainland Europe in response to Brexit. (Financial Times)
  • An immigration discussion paper drawn up by one of Jeremy Corbyn’s senior advisors has indicated that Labour could open a visa route for unskilled labourers to enter the UK after Brexit. Labour have insisted that the document is not a statement of party policy, but part of the work exploring the options around immigration. (Evening Standard)
  • A report from the Nuffield Trust (a healthcare think-tank) has warned of a significant increase in costs to the NHS following Brexit. The healthcare costs of British citizens living abroad in Europe is currently managed under the reciprocal S1 scheme. The report calculates that the NHS would be hit with a bill for an extra £500m a year if this scheme is not replaced when Britain leaves the EU. (The Guardian)