Financial Services Ireland

Brexit: Considerations for your Internal Audit operating model

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Brexit: Considerations for your Internal Audit operating model

Internal Audit: The UK financial services (FS) sector has been facing unprecedented uncertainty after voted to leave the European Union (EU) on the 23 June 2016. Whilst the final terms of exiting the EU remain uncertain, the Prime Minister has provided some clarification on the specific objectives that the UK Government is hoping to achieve through its negotiations.

To help Internal Audit (IA) functions through the challenges and uncertainty ahead, EY is producing a series of articles on how Brexit will impact the IA operating model and what this means for IA. In this first issue, we break down some of the implications for financial services firms and outline some of the considerations for your IA operating model.

The long-term impact on the FS sector will depend on the exit terms to be agreed over the course of the negotiations in the next few years. However, it is clear that the current FS industry’s operating model and governance will be significantly affected.

On 17 January 2017, the UK Prime Minister, Theresa May outlined twelve negotiation objectives which will define the UK’s Brexit strategy when entering talks with the EU. Whilst not all twelve objectives directly relate to FS, there is a clearer vision from the UK Government around the UK-EU deal, and how it could impact FS.

Some of the key messages from the speech include the Government’s desire to leave the Single Market, and for the UK to control its own borders, whilst remaining open to international talent. Download our report, Brexit: Considerations for your Internal Audit operating model.

How EY can help with Internal Audit

EY is the leading provider of IA services both globally and within the UK, with a market share approaching 50% of the Business Global Week 1000. In the last 12 months, we have provided support to almost 3,000 clients globally. We have the largest FS Risk and IA practice in the UK and across EMEIA of any of the other professional services firms, with over 1,800 dedicated FS Risk professionals, drawn from anoverall FS business of 10,000 professionals.

This market leading position, as well as our experience in the delivery of a number of IA improvement programs
means we are well placed to help your function to:

• Identify how Brexit may impact your current operating model
• Develop pragmatic recommendations to addressthe challenges
• Design, embed and measure Brexit-related changes

Download the report below for more information, or contact us to find out how EY Ireland can help you prepare for Brexit. For more content from the EY Ireland team, visit our YouTube channel.

Cormac Kelly

Brexit Leader
Cormac's Full Profile