Case Study
Entity stand-up of the financial markets business of a major UK bank in the Netherlands
Transformation | Financial Markets & Banks | Amsterdam
The Background
- As a result of the Brexit vote and the UK’s decision to leave the European Union, many of the major banks have had to establish fully operational subsidiaries within the European Union
- This had to be done at short notice and before the end of the transition period, when the UK left the European single market.
The Challenge
The establishment of a fully functioning subsidiary is highly complex and involves numerous activities that include:
- The development of a business case for regulatory review
- A full banking license application – full trading license can take up to 18 months to approve and involve thousands of pages of documentation
- Developing detailed plans
- Mobilising a comprehensive governance structure with multiple work streams
- Changes to technology systems and reports (front to back) across all asset classes and functions of the bank to support sales and trading activities within the entity for EU clients
- On-boarding the new entity on to EU based market infrastructure and exchanges
- Implementation of a local treasury function and establishment of a Target2 account
- Establishment of new premises, hiring of staff and hiring of a managing board
The Approach
- Provision of a team to mobilise the project at pace
- Leading the development of the business case, with inputs from numerous parties across the organisation (front to back)
- Detailed planning and the mobilisation of 10 programme work streams (technology to HR to operating model)
The Impact
Oversaw the delivery of system changes that included:
- Changes to 120+ global systems, front to back
- Implementation of membership of 100+ new venues, exchanges and ccp’s
- Substantial operational changes (multiple locations, front to back operating model), local regulatory reporting (DNB & AFM) and risk reporting changes (150+ reports)
- 100+ nostro account openings (30+ countries)
- Facilitated the delivery of a fully functioning new bank and trading function that supported a substantial number of clients across a wide range of asset classes within the EU market
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