The UK is one of the world’s leading financial centres. Financial services drive a trade surplus with the EU of £20bn. Retaining this position is the challenge that financial institutions and all stakeholders may now have to consider.
Our research showed the financial sector’s economic contribution to the UK could be reduced by up to £12bn by 2020 and many non-EU headquartered financial services institutions currently using the UK as a base for accessing the EU market, are likely to be looking closely at their operations in the UK in the context of the leave vote.
The result of the vote does not represent the end of the debate that has impacted markets in recent months.
Months, and possibly years, of negotiation will now follow before FS organisations will have clarity on what access the UK-based FS organisations will have to EU countries or on the rules they must comply with to secure this access.
However, history has taught us that UK business is adaptable and Financial services will continue to make a major contribution to the UK economy.
The sector accounts for 8% of total UK economic activity and directly employs 1.1 million people.
This result should be taken as a major opportunity for financial services firms to work with regulators, investors and clients in order to shape a new rulebook fit for the new climate.