Laven Brexit Team, which was set up 3 years ago to work on Brexit consulting and potential solutions, including procuring the set up of a MiFID compliant one-stop-shop in Luxembourg, has concluded that there is no longer the prospect of any one convenient solution that makes it worthwhile to pursue.
Iga Sloan, Associate Director for the EU compliance team and part of the Laven Brexit Team said: “Given the increased hostility to hosting and secondment arrangements, and the travel difficulties under COVID-19 making it hard for staff to travel to the EEA post-Brexit to do their EEA work, we do not feel a MiFID based hosting solution or under the tied agent regime is safe or sound for clients or service providers. Other solutions on a case by case may work and we will advise clients in this respect, also offering our compliance software to help them evidence the substance and work done in the EEA and or in the UK which should be distinguishable.”
Laven CEO Jerome Lussan added: “It is our current position that the Laven Group will not pursue a one-stop-shop Brexit solution under MiFID. Laven will continue to consult and advise its clients to consider all solutions on their merits for them. We are probably by now the most advanced compliance group in our Brexit research having invested heavily in legal verifications of our ideas and options. We wish to continue to share that to help the industry. Firms should therefore consult with their lead counsel and or with us on a more pragmatic and commercial approach that would seek to meet their needs. Regrettably, business practices will have to change but it will also create new opportunities.”
