With 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 Minister Boris Johnson was elected Prime Minister the following month, who was well-known as a headstrong Brexit supporter.  While the United Kingdom was predicted to leave exit the EU by October 31st, 2019, the U.K. Parliament sought out a deadline extension that delayed voting on the new deal.  Following Boris Johnson’s reelection, Brexit occurred on January 31st, 2020 at 11 pm Greenwich Mean Time.  Brexit Creating Ongoing Issues in with Europe While the United Kingdom is in a transition period following its departure from the EU, the U.K. is negotiating its complete trade relationship with the EU, which is the United Kingdom’s largest trade partner. Terms of this trade agreement must be met by January 1st, 2021. Should terms of this trade agreement take longer than the projected resolution date of January 1st, 2021 then the U.K. must acquire an extension no later than June 1st, 2020. Failure to do so will result in the U.K. is subject to tariff and host rule changes exercised by the E.U. This situation is referred to as the “no-deal” Brexit and should this occur the consequences could result in a significant fallout of the U.K. economy.  For the past few years, many banks and lenders operating previously in the UK had been given passporting rights to the European continent. The lingering uncertainty caused by Brexit resulted in many of these lenders relocating their European headquarters within continental Europe. 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 Minister Boris Johnson was elected Prime Minister the following month, who was well-known as a headstrong Brexit supporter.  While the United Kingdom was predicted to leave exit the EU by October 31st, 2019, the U.K. Parliament sought out a deadline extension that delayed voting on the new deal.  Following Boris Johnson’s reelection, Brexit occurred on January 31st, 2020 at 11 pm Greenwich Mean Time.  Brexit Creating Ongoing Issues in with Europe While the United Kingdom is in a transition period following its departure from the EU, the U.K. is negotiating its complete trade relationship with the EU, which is the United Kingdom’s largest trade partner. Terms of this trade agreement must be met by January 1st, 2021. Should terms of this trade agreement take longer than the projected resolution date of January 1st, 2021 then the U.K. must acquire an extension no later than June 1st, 2020. Failure to do so will result in the U.K. is subject to tariff and host rule changes exercised by the E.U. This situation is referred to as the “no-deal” Brexit and should this occur the consequences could result in a significant fallout of the U.K. economy.  For the past few years, many banks and lenders operating previously in the UK had been given passporting rights to the European continent. The lingering uncertainty caused by Brexit resulted in many of these lenders relocating their European headquarters within continental Europe. Read this Term transition period coming to a close, IG Group today said its UK entity will no longer be able to service EEA clients. Europe’s largest spread betting and CFDs provider will set non-UK clients’ accounts to ‘closings only’ from 31 December 2020. Affected clients will have one month to close their trades manually, otherwise, IG Groupe will liquidate their positions on 31 January 2021.

With only two days to go until the end of the Brexit transition period, UK brokers are losing so-called 'passporting' rights which allow them to provide services and products across the continent. Instead, they will need country-specific approvals in order to provide their services, which has prompted some brokers to terminate offering to non-UK clients.

Part of their preparation for Britain’s exit from the Europe Union, the UK-listed broker has given clients of its UK entity the option to be moved to its European subsidiary, IG Europe. The latter is based in Germany and is authorised and regulated by BaFin and Bundesbank.

“If you have previously agreed to transfer your account to IG Europe but have not received confirmation that the transfer has taken place, please email the helpdesk / live chat us as soon as possible so we can look into this,” the company emphasized today.

IG Group further explained: “Please note that, after 31 December, you will still be placed on closings only until your account has been successfully transferred. Therefore, if you consent to the transfer, you won’t be able to open any new positions from 31 December until the transfer has taken place. We expect the transfer to happen in mid-January, and we will notify you of your transfer date in advance.”

The end of the post-Brexit transition period later this week will see UK-based financial services providers having to abide by different rules if they want to operate in mainland Europe.

IG Group and other brokerage platforms established or expanded their European bases ahead of the UK’s departure from the bloc. The Brexit is expected to cause substantial changes in Europe’s regulatory environment, particularly the restrictions that will be placed on FCA regulated firms to passport into Europe.