The Globe and Mail reports in its Friday edition that Canada's big investment banks are preparing for the possibility of a worst-case Brexit scenario, with some taking steps to bolster their Dublin offices in case Britain is not able to strike a deal with the European Union.
The Globe's Alexandra Posadzki writes that a six-month extension granted to Britain by European Union leaders on Wednesday has averted the possibility of a "hard Brexit" occurring today, but Canadian banks are continuing to prepare for all possible outcomes, putting together contingency plans to ensure that they will be able to continue serving both U.K.- and Europe-based clients in the event that Britain loses its "passporting" privileges, which permit bankers licensed in London to do business across the continent. Bank of Nova Scotia is readying itself to migrate some aspects of its European capital markets business from its London office to Dublin if necessary, said Jake Lawrence, co-head of the bank's global banking and markets division.
"We do have an operation in Ireland that will continue to be an EU-passported entity, so we will still have the ability to continue to access the EU," Mr. Lawrence told The Globe on Wednesday.
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