According to a new report published by a committee of MPs, Brexit will have an enormous impact on more than 5,000 firms in the United Kingdom that rely on corporate passports to conduct their business.
The chairman of the Treasury select committee, Andrew Tyrie says that businesses in the United Kingdom will be greatly and risk if the nation loses its access to the single market along with their passporting for companies.
Mr Tyree published those new findings that had been provided by the financial conduct authority, a report that shows that approximately 5500 firms registered in the UK have at least one passport that allows them to conduct business in other EU member states. However, more than 8000 companies in other European states make use of these same rules to conduct business in the United Kingdom, an indication that the passporting rules are also important for those companies operating outside the UK.
“These figures give us an initial idea of the effects of losing full access to the single market in financial services. The business put at risk could be significant. Almost 5,500 UK firms are using passports to do business in Europe, and over 8,000 European firms are using passports to provide services in the UK,” Tyrie said to the press.