Estonia's Financial Supervision Authority (FSA) granted LHV Pank, a subsidiary of the listed Estonian financial services group LHV Group, approval to establish a branch in the UK as a third country, should the UK become a third country as it exits the EU.
LHV Pank required this permission as the previous permit only allowed it to operate within the EU. On its part, the UK has given EU financial institutions a transitional period through the end of 2020, LHV told the Tallinn Stock Exchange (TSE).
LHV Pank is also applying to the UK's Financial Services Authority to continue its branch operations as a financial institution from a third country.
"Our preparations for Brexit are going according to expectations, and now we have until the end of next year to complete the next steps needed to enable LHV's London branch to do business as planned," said Andres Kitter, head of LHV UK. "We are working hard and we feel optimistic that our request to the financial supervisor in the UK will soon receive the desired response."
According to Mr Kitter, the Estonian regulator graciously acted swiftly, considering the fact that many loose ends remain in connection to Brexit, and the bank's request had to be responded to conditionally.
LHV Group is a financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 390 people, and more than 161,000 customers use LHV's banking services. Pension funds managed by LHV have more than 178,000 active clients.
Editor: Aili Vahtla