On Monday evening, I attended a lecture on the potential impact of Brexit on the UK financial services sector (“Report,” link). The Report was produced by Oliver Wyman and commissioned by TheCityUK. The presentation covered the current state of play of financial services in the UK, different scenarios for single market access, and some key recommendations for businesses and professional advisers.
Current state of play
- The UK financial services sector earns approximately £190-205BN in revenues, and of this, up to £50BN is directly related to European Union activity. (Domestic business and other “Rest of World” interactions were not considered).
- Together with the 1.1 million people working in financial services around the country, the sector generates an estimated £60-67BN of taxes each year, and contributes a trade surplus of approximately £58BN to the UK’s balance of payment.
The five important features of a successful future relationship between the UK and EU will require the UK to (as recommended by Oliver Wyman): adhere to global norms, retain current access to international markets, maintain/create equivalence and grandfathering, implement orderly transition arrangements, and maintain ongoing regulatory collaboration.