Brexit would Hit City of London says Britain’s Finance Lobby

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TheCityUK lobby said that all of the alternatives to Britain’s membership of the European Union are second best and they could damage the competitiveness of City of London’s finance industry.brexit

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They also said that a bespoke financial service agreement was feasible between the European Union and Britain, however the content of such an agreement would be uncertain.

The negotiations would take time and a bloc might treat Britain as a less regulated off shore center.

The Chief Executive of TheCityUK, Chris Cummings told Reuters that they have not seen anything that would give the UK the same level of influence as membership.

On the 23rd of June, Britain will go to the polls to vote on if they should stay or leave the EU.

The Brexit is to be backed by Britain then a two-year negotiation on the exit terms could ease some of the initial fallout.

Cummings said that he doesn’t think there would be a huge movement of jobs immediately, but rather the worry would be foreign direct investment doesn’t arrive. He went on to say that he doesn’t think that all businesses would leave the UK and end up in Frankfurt or Paris but rather a share would go to Asia and New York, with Europe losing out.

TheCityUK said that if Britain did leave then it couldn’t be assumed that EU regulators would be able to live with large EU financial service businesses maintaining their current level of assets in London if the rules in regards to the markets would change.

TheCityUK has already said that they believe that Britain should stay in the EU and listed drawbacks to leaving including having to contribute to the EU in order to have access to a single market and having no say over the financial rules.

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