- The UK’s strengths will mean that London continues to be Europe’s leading financial services centre. London is ranked the most competitive in the world for financial services, while closest EU rivals rank at 15th and 19th.
- Brexit negotiations need to offer reassurance about passporting, which allows many British financial service firms to operate across the EEA. The UK could achieve third-party status in many financial service areas, but it may struggle in others.
- Incomplete single market in services offers limited benefits. Services make up 70% of Europe's economies and generate more than 90% of new jobs, yet services account for just 20% of intra-EU trade.
- Brexit opens up new opportunities for UK financial service firms. Bilateral trade agreements with emerging financial centre such as Hong Kong and Singapore are now possible.
- Brexit also offers opportunities to opt out of punitive EU regulation. This includes the Market Abuse Regulation, which inter alia requires directors with inside information to notify closely associated persons in writing, including illiterate children.
The City Boys Are Here to Stay
Daniel Mahoney, Jon Moulton and Tim Knox - Wednesday 7th September 2016