Brexit Forces Hirose UK to Shut EEA Business

Hirose UK, the British subsidiary of the Japanese broker, has notified on Thursday that it has stopped taking clients from the European Economic Area (EEA) due to the impact of Brexit on its business.

“Please kindly be informed that Hirose UK will no longer be able to accept clients from the EEA countries due to the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term taking place on the 1st January 2021,” the brokerage stated. “We have already stopped accepting new applications from those countries.”

Hirose UK is regulated by the UK’s Financial Conduct Authority (FCA) and passports its licensing rights to offer services in the European Union.

But, with the upcoming expiry of the Brexit transition, and without any deal between the EU and UK, businesses operating in both the regions are facing uncertainties about their operations.

“If you are from an EEA country and have a trading account with us, your trading account will be closed. If you have a remaining balance in your trading account, please contact us at info@hiroseuk.com so we can arrange to return your funds back to you,” the announcement added.

Meanwhile, the business of the Japanese broker is constantly declining in Europe. Its revenue for the last financial year declined by 17 percent annually, resulting in a significant yearly loss.

Moreover, the broker is focusing more on B2B clients in the UK, increasing its base of professional traders.

Brexit and Its Woes

While Hirose is closing its European accounts, many UK-based brokers are gaining licenses from European countries to continue operations of their business in the EU.

As Finance Magnates reported earlier, Interactive Brokers recently opened subsidiaries in Hungary and Ireland. It has already started to migrate East European clients from its UK entity to the Hungarian one.

Furthermore, many brokers are heading towards Cyprus to gain a regulatory license from CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term.