1. Restricted market access of UK regulated financial service providers to the EU - Risk of UK regulated financial service providers not being able to continue providing services in Ireland/EU post-Brexit through an Irish/EU branch or under freedom to provide services (i.e. loss of passport rights and loss of access to the Single Market) and having to establish or acquire a regulated subsidiary in the EU in order to retain market access to Ireland/EU.
  2. Restricted market access of Irish/EU regulated financial service providers to the UK - Risk of Irish/EU regulated financial service providers not being able to continue providing services in the UK post-Brexit through a UK branch or under freedom to provide services (i.e. loss of passport rights) and having to establish or acquire a regulated subsidiary in the UK in order to retain market access to the UK.
  3. Dual regulation – additional costs and complexity - Risk that Brexit will require regulated financial service providers who do business in both the EU and the UK to comply with separate regulatory regimes in the EU and the UK resulting in additional costs and complexity in order to maintain regulatory compliance.
  4. Staffing and outsourcing – Risk that, if it is necessary to establish a subsidiary in another jurisdiction, this will require the recruitment of management/staff in another jurisdiction or the transfer of existing management/staff to another jurisdiction and possibly the putting in place of outsourcing arrangements between group companies.
  5. Remuneration - Risk that if the UK is no longer subject to restrictions on remuneration and bonuses under EU regulations applicable to regulated financial service providers (e.g. CRD IV) and the UK uses its freedom to permit higher remuneration in the financial services sector, this will have an adverse impact on regulated financial service providers in the EU when competing to recruit senior talent as they will remain subject to such remuneration caps.