With the extended Brexit deadline looming, businesses are forced to confront a new reality.

Within the financial sector, many institutions have taken steps to establish a presence in the UK. More than a thousand banks, insurance companies, and other financial entities have disclosed plans to open new offices in post-Brexit UK to continue serving their British clientele. These entities aim to inaugurate offices and recruit additional personnel to mitigate the anticipated decline in business post-Brexit. The expectation is for unrestricted two-way business access between the UK and the EU to materialize by the end of January. Nevertheless, considering prior extensions of the Brexit deadline, further postponements are not out of the question.

Up until now, the thousands of EU financial entities catering to British clients have been able to operate from their home countries. Presently, they are seeking interim authorization to conduct business in the UK beyond January 31st, as per insights from regulatory consultancy firm Bovill.

In addition to the preparations of EU companies for Brexit, British firms are also getting ready for the transition. More than 300 British financial organizations have established new footprints in the EU to ensure continued service provision to clients on the other side of the English Channel. As of now, entities from both sides of the Channel are vigilantly monitoring Brexit negotiations while gearing up for what appears to be an inevitable shift.