4 minute read 6 Nov 2020
Brexit: Immigration implications for FS and FinTech

What the Brexit immigration implications are for the Financial Services sector

Authors
Seema Farazi

EY Global Government Affairs and Financial Services Immigration Leader; EY EMEIA Immigration Leader

Over 20 years of cutting-edge immigration law experience. Qualified barrister. Practised in complex immigration, extradition and public international law cases at all appeal court levels.

Andrew Pilgrim

EY UK Government and Financial Services Leader

Expert in public sector engagement and financial services. Worked across political, regulatory and policy issues that shape the sector.

Christopher Woolard CBE

Partner, Financial Services Consulting, Ernst & Young LLP; EY UK FinTech Leader; EY Global Financial Services Regulatory Network Chair; EY EMEIA Financial Services Regulation Leader

Experienced senior leader in regulation, strategy and innovation. Building better consumer and market outcomes in financial services.

4 minute read 6 Nov 2020
Related topics Financial Services EMEIA Brexit – Crossing borders in Financial Services
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Financial Services and FinTechs rely on talent from outside the UK; business planning for the UK’s 2021 immigration system is now critical.

In brief
  • The UK’s new points-based immigration system comes into place from 1 January 2021.
  • FinTech and financial services firms must be prepared for restricted rights to work as well as changes to rules on business travel and social security.

From 1 January 2021, the UK will have a new points-based immigration system. EU and EEA citizens resident in the UK before 31 December 2020 will have the right to settle, provided that they apply to EU settlement scheme before 30 June 2021. With nearly four times as many overseas migrants working in UK FinTech organizations versus the UK workforce in its entirety, it is imperative that financial services and FinTech organizations consider their talent and mobility plans and are prepared for restricted rights to work, changes to rules on business travel and social security.

Top tips for workforce and people

  • Ensure that EU (in UK) and UK (in EU) employees have complied with the applicable immigration registration and legal requirements.
  • Inform your travelers, remote workers and business stakeholders on the vastly different immigration landscape from 1 January 2021 and how this will impact you and them: personal and corporate risk; permitted activities and operational resilience; speed to deployment and cost. For example, the UK immigration cost will increase for EU arrivals from £0 to £9,500 for a five-year work visa and lead times will change.
  • Identify those mobile employees among current assignee population who are currently living and working in the EU, their nationalities and current countries of residence, and that any A1 certificates extensions into 2021 are in place before 31 December 2020.
  • Monitor ongoing developments on social security cooperation between the UK and EU.
  • Brexit-proof your cross-border remote working and “work anywhere” models (compliance risk, talent retention and attraction).
  • For start-ups in FinTech, ensure you have a sponsor licence in place if you may need non-UK workers.
  • Strategic workforce planning, including:
    • Undertaking a workforce risk analysis identifying any key personnel or material numbers of employees, who may pose a flight risk if they will no longer prefer to work in the UK or can no longer work remotely in the EU without immigration permission.
    • Incentivize staying in the UK where possible by helping employees with the registration processes to support talent retention.
    • Looking at alternative workforce models and supply of staff, checking terms and conditions of key personnel for notice periods and covenants.
    • Assessing the benefits of expediting any recruitment of key roles or talent moves before 31 December 2020.
    • Ensuring adequate right to work checking is in place that “lean-in” to available government flexibilities.

How EY can help

Integrated workforce mobility

Traditional long-term moves are declining in favor of a variety of business travel approaches and mobility options that better fit organizational strategy and employee needs. Supported through a frictionless, consumer-level experience, these approaches can boost compliance and speed to deployment.

Read more
High reliance on Migrant talent infograph

The arrangements for UK citizens in the EU will mirror those for EU citizens in the UK – those who arrive by 31 December 2020 will be able to stay on an ongoing basis, although registration requirements will vary by country. UK talent currently in or moving into the EU will present more challenge – with each EU country implementing their own legislation. 

FinTech and financial services firms must understand the immigration processes and timelines for EEA and Swiss worker arrivals in the UK from 1 January 2021 and what activities their business travelers are performing. Even organizations with the most Brexit-proof models should be alert to how things may impact both existing and planned workforces in the UK and EU, particularly with pandemic complexities around travel. Ongoing implementation and increasing enforcement of posted worker legislation across the EU brings a whole new dynamic to assessing the risks associated with business travel and short-term mobility.

From 2021, new EU arrivals into the UK are expected to fall under the UK’s new immigration landscape.

How EY teams can help

  • Brexit-proofing “work anywhere” policies
  • Supporting immigration and visa processes for personnel moving across the UK and EU borders
  • Health check on your UK sponsor licence 
  • Sponsor licence applications and compliance 
  • Reviewing immigration strategy and workforce planning to optimize where and how employees are deployed across Europe
  • Assessing the viability of travel and effective use of business travel to support ESG performance 
  • Assisting manage social security and other remuneration costs
  • Devising leading class communication strategies, policies and contracts to manage workforce fears and concerns, and to mitigate against individual and corporate regulatory risk

Summary

With high reliance on migrant talent in financial services and FinTech, and a new UK immigration system landing on 1 January 2021, it is imperative that organizations assess and identify their reliance on EU talent and the impacts of this on their workforce.

About this article

Authors
Seema Farazi

EY Global Government Affairs and Financial Services Immigration Leader; EY EMEIA Immigration Leader

Over 20 years of cutting-edge immigration law experience. Qualified barrister. Practised in complex immigration, extradition and public international law cases at all appeal court levels.

Andrew Pilgrim

EY UK Government and Financial Services Leader

Expert in public sector engagement and financial services. Worked across political, regulatory and policy issues that shape the sector.

Christopher Woolard CBE

Partner, Financial Services Consulting, Ernst & Young LLP; EY UK FinTech Leader; EY Global Financial Services Regulatory Network Chair; EY EMEIA Financial Services Regulation Leader

Experienced senior leader in regulation, strategy and innovation. Building better consumer and market outcomes in financial services.

Related topics Financial Services EMEIA Brexit – Crossing borders in Financial Services
Upvote