The European Central Bank has warned banks that some of their Brexit plans are inadequate as they involve setting up “empty shell” operations in the EU that are not properly staffed. The Frankfurt-based institution said “elements in a number” of relocation plans submitted by banks that use the UK as their gateway to the EU “did not fully meet” its expectations. In a quarterly supervisory update, the ECB warned about “double-hatting” – where employees hold roles across different locations – and expressed concern about employees not being physically located in the euro area. The Bank of England has analysed the Brexit plans of 400 banks and concluded that 10,000 jobs could leave on day one after the UK leaves the EU, suggesting 75,000 roles may be lost over the long term. In other words, there cannot be empty shells or letterbox banks,” the ECB said.

Source: The Guardian November 15, 2017 18:00 UTC