Brexit dynamits the BlackRock structure in the European Union

Brexit dynamits the BlackRock structure in the European Union


MadridUpdated:

Time is short and the great fortunes do not want the Brexit to take their toll. In the face of a UK exit from the European Union in swampy terrain, BlackRock has already moved tab. The biggest investment fund manager of the world (six billion dollars in portfolio) has reorganized its entire structure in the Old Continent to guarantee that it will be able to continue operating as of March 30. Everything is to prevent your business in the Old Continent from going under.

Spain, Italy, Greece, Hungary, Austria … All their local divisions will be, from now on, under the protection and under the direction of the subsidiary of the entity in Holland. In this way, the headquarters of the United Kingdom lose the power and control exercised over each territory.

Till the date, BlackRock it operated in the EU under the formula of branches, but almost always dependent on the United Kingdom (except Germany, Ireland, France, Luxembourg and the Netherlands). With the Brexit close to completion and on the verge of boiling, the manager has not wanted to take any risks and has created throughout 2018 new branches in each community region in which it operates that would be outside the continental regulation. Its technical objective, thus, is to be able to comply with the regulations Mifid II, already transposed in Spain by Decree Law.

The entity covers its activity in the Old Continent since, after the British exit, it could not continue operating. The year 2018 has been the exercise of the transformation of its entire network to locate the headquarters of Holland in the center of the whole equation: it will depend on all branches, including the Spanish, which moved a capital of about 30,000 million euros. From January until now, the societal changes have ended, but they are not definitive since the outcome of Brexit would change certain decisions.

BlackRock has been inscribing its new branches in the different mercantile registers before the threat of a soft or hard Brexit. The formula did not matter, but foresee any possible adverse effect. "After Brexit, our clients from the European Economic Area will receive support from our extensive network of regulated entities in Europe (France, Germany, Luxembourg, Ireland and the Netherlands) and will be able to benefit from our portfolio management and intermediation capabilities throughout the world », say sources of the company.

Consequently, the companies of France, Germany, Luxembourg to Ireland remain without noticeable changes. It is the British company that will suffer the biggest blow, taking into account, in addition, that the departure from the United Kingdom has a difficult solution. At least, to make it happen peacefully.

Review of decisions

Also, from BlackRock they emphasize that this movement of pieces may not be the only one. "Given that there is still a marked uncertainty at the political and regulatory levels, we continue to monitor all events with attention and we will review our actions based on evolution of the relationship between the EU and the United Kingdom », say sources of the entity.

Everything will depend on the final formula they carry out for the disconnection since depending on it they will make some decisions or others. Six billion under management worldwide are shaken by the decision of the United Kingdom.

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