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Finance

Japan's financial companies looking to Frankfurt, Amsterdam as next EU centers

Banks, brokerages fear losing 'passporting' rights in case of 'hard Brexit'

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The Frankfurt Stock Exchange   © Reuters

TOKYO -- Japanese megabanks and other financial establishments are reorganizing their operations in Europe out of concern about the U.K.'s expected departure from the European Union in 2019. Their biggest fear is losing the "passporting" rights they have enjoyed in the single economic bloc, in case London loses free access to the market. 

The EU allows financial companies authorized in one EU country to operate in any other in the bloc. Most Japanese banks and brokerages have such licenses in the U.K. To avoid any future turmoil, the Japanese companies are launching new locations outside the U.K. while maintaining their London operations.

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