Brexit: why a bespoke financial services deal for the United Kingdom is 'pivotal'

Elias Hubbard
January 13, 2018

Top British bankers asked Prime Minister Theresa May for more clarity about the future regulatory relations between the United Kingdom and the European Union (EU), although they were encouraged by the preliminary divorce agreement reached last month.

One senior minister said: "How are we supposed to know what kind of Brexit is best if we aren't being provided with our own assessments of what they mean for our future prospects?"

Her comments came just as new warnings emerged of job losses in the London financial sector unless there is a trade deal.

"It was an encouraging, positive meeting", a banker briefed on the talks said.

As Britain prepares to leave the European Union next year, businesses based in the United Kingdom were seen to be struggling to attract investment, according to 's Paul Venables.

Recruitment firm Morgan McKinley also said Brexit was the main reason for a 37% drop in new jobs available in London's financial sector last month. She said she was confident parliament would back her amendments, although other prominent lawmakers have previously called for a sweeping relocation of euro business from London to the European Union after Brexit.

Continued financial and regulatory co-operation within Europe after Brexit is essential if the continent is to "lead the world" in terms of enhancing global financial supervision.

Mayor Sadiq Khan said Britain could lose nearly 500,000 jobs if it failed to agree a trade deal with the European Union. The EU has already proposed that clearing of euro-denominated derivatives, done mainly in London, could move to the euro zone without a comprehensive Brexit deal.

United Kingdom businesses continue to lag behind their European peers ahead of Britain's upcoming departure from the (EU), according to the CFO of the U.K.'s biggest recruitment firm.

Under a deal in which Britain was able to secure privileged access to the single market, annual growth...

A spokesman for May said Britain will not pay for market access.

Other reports by Click Lancashire

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