Brexit is set to weaken UK financial services industry

2016 ◽  
Keyword(s):  
New York ◽  
United Kingdom ◽  
Financial Services ◽  
European Economic Area ◽  
Content Type ◽  
Eu Member States ◽  
Financial Centre ◽  
The United Kingdom ◽  
City Of London ◽  
The City

Subject UK financial industry's 'passporting' and 'equivalence' in post-Brexit EU. Significance Under current EU rules, the United Kingdom will lose its passporting rights -- which allow financial companies authorised in the United Kingdom to sell their products across the European Economic Area (EEA) -- once it leaves the bloc. This would damage the reputation and status of the City of London as Europe’s leading financial centre. Impacts The EU is unlikely to change its tough stance and allow the United Kingdom to retain its passporting rights after its leaves the EEA. Cities in remaining EU member states such as Dublin, Frankfurt or Paris may attract some business from London. However, New York will probably be the biggest winner in the long term. Restrictions on EU migration could further impact the competitiveness and attractiveness of the City of London after Brexit.

Land of Hope and Enterprise

2021 ◽  
pp. 1-25
Author(s):  
Alex Brummer
Keyword(s):  
New York ◽  
Financial Crisis ◽  
International Institutions ◽  
Higher Learning ◽  
Financial Centre ◽  
Institutions Of Higher Learning ◽  
Eu Referendum ◽  
The Uk ◽  
City Of London ◽  
The City

This chapter examines the contribution of recognized activities that make the UK economy, such as the progress in research, pharmaceuticals, technology, software, and innovation that can be traced back to the intellectual powerhouses of UK's institutions of higher learning. It recounts the UK's love–hate relationship with the City of London, wherein the banks are still blamed for the financial crisis of 2007–2009 and the subsequent stagnation and fall in incomes. It also cites finance as the highest UK earner of overseas income and is a magnet for international institutions. The chapter describes London as the biggest financial centre outside New York and has attracted even greater numbers of skilled financial traders since the EU referendum result of 2016. It explains how the UK financial sector accommodated trading, provided credit, and raised new capital for troubled firms and those seeking post-Covid-19 opportunities.

Member states will drive EU foreign policy

2018 ◽  
Keyword(s):  
Foreign Policy ◽  
United Kingdom ◽  
Member States ◽  
Content Type ◽  
Eu Member States ◽  
Eu Foreign Policy ◽  
The United Kingdom ◽  
Policy Goals ◽  
National Defence ◽  
The Eu

Significance However, member states have the dominant foreign policy role in the EU. After Brexit, that will be France and Germany despite the United Kingdom insisting that it wants to maintain as close a relationship with the EU as possible. Impacts EU reformers will light on foreign policy as an area to drive forwarded integration. However, the EEAS lacks the competencies and institutional horsepower to be a force for integration. The strategic needs of the 27 post-Brexit EU members will be various, thus acting as a drag on integration. Smaller EU member states will see more advantage than larger ones in collectively pursuing foreign policy goals through Brussels. Larger member states will be unwilling to submit their national defence policies to greater EU authority.

Prospects for a close EU-UK trade deal are not good

2019 ◽  
Keyword(s):  
United Kingdom ◽  
Financial Services ◽  
Transition Period ◽  
Content Type ◽  
The United Kingdom ◽  
Uk Government ◽  
The Uk ◽  
The Impact ◽  
Limited Period ◽  
The Eu

Subject UK-EU trade talks. Significance The United Kingdom will leave the EU on January 31, 2020, but will abide by EU rules as part of the transition period, which runs to December 31, 2020. During this limited period of time, London and Brussels will seek to negotiate a permanent trading relationship. While the transition deadline can be extended, the UK government has committed not to seek an extension. Impacts The impact of no trade deal or a 'thin' one may force the UK government to increase taxes in order to meet spending pledges. UK financial services will rely on an equivalence deal with the EU; London hopes to agree this by mid-2020. The EU’s future trade policy will focus on having stronger sanction powers as well as legal ones for those that unfairly undercut EU firms.

Brexit’s impact on the City of London will vary

2020 ◽  
Keyword(s):  
Financial Markets ◽  
Free Trade ◽  
Financial Services ◽  
Single Market ◽  
Services Trade ◽  
Content Type ◽  
Eu Countries ◽  
Trade Deals ◽  
City Of London ◽  
The City

Significance The alternative to passporting after Brexit is ‘equivalence’, which would allow EU and UK firms access each other’s financial markets. However, such a regime does have the same sectoral coverage as passporting and is vulnerable to revocation. Impacts New free trade deals with non-EU countries will not substitute for the EU’s single market in terms of financial services coverage. While the strength of other EU financial centres will grow, London has an infrastructure that is difficult to replicate. Failure to reach an agreement on UK-EU financial services trade could see many firms unable to serve EU clients from London.

'Brexit' could hinder long-term UK growth

2016 ◽  
Keyword(s):  
At Risk ◽  
United Kingdom ◽  
Trading Partner ◽  
Content Type ◽  
The United Kingdom ◽  
Scottish Independence ◽  
The City

Significance Depending on the outcome, the United Kingdom's relation with its largest trading partner may be at risk, together with the City of London's role as a financial hub and the ability of EU citizens to work freely in the United Kingdom. Impacts In the event of Brexit, the pound could fall to 1.3 against the dollar and towards parity against the euro. Despite having sold off already, UK bank stocks could fall further in the case of Brexit. Given Scotland's pro-EU stance, an 'out' vote could reopen the debate about Scottish independence.

Post-Brexit EU will focus on defence and security

2016 ◽  
Keyword(s):  
United Kingdom ◽  
Single Market ◽  
Free Movement ◽  
Integration Process ◽  
Security Cooperation ◽  
Content Type ◽  
Eu Member States ◽  
The United Kingdom ◽  
Free Movement Of Workers ◽  
The Eu

Subject The Bratislava summit. Significance Leaders of the EU-27 -- all EU member states except the United Kingdom -- held an 'informal' summit in Bratislava on September 16, aiming to demonstrate their shared resolve to move forward with the integration process in the wake of the Brexit vote. While leaders agreed to a roadmap of policy plans, they skirted around the most divisive issues facing the EU and did not agree on any significant new initiatives. Impacts EU governments again failed to agree to a workable plan to address the migrant crisis, rendering an EU-wide solution increasingly unlikely. Significant agreements on improved security cooperation may not be reached until well into 2017. The EU is likely to block any UK efforts to maintain its current access to the single market without allowing for free movement of workers.

Part II The Transatlantic Dialogue, 6 The United Kingdom—Gentlemanly Capitalism and the International Markets

2021 ◽  
Author(s):  
Jordan Cally
Keyword(s):  
United Kingdom ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
International Markets ◽  
Role Of Government ◽  
The United Kingdom ◽  
Popular View ◽  
The Global Financial Crisis ◽  
City Of London ◽  
The City

This chapter focuses on the regulation of international markets in the United Kingdom. Providing investor protection in the United Kingdom has been a fraught and difficult process. Even well into the 1980s, one very popular view in the City of London, openly espoused, was that it was not the role of government, nor was it necessarily either possible or desirable, to ‘protect fools from their own folly’. Rather, the gentlemen of the City, historical evidence to the contrary notwithstanding, insisted that their ‘impeccable’ behaviour provided all the protections necessary. Less than a decade ago, the International Monetary Fund (IMF) identified ‘uncertainty risk’ as the major threat to the City of London. At the time, massive regulatory change in the United Kingdom and a tidal wave of EU regulation in response to the global financial crisis were the immediate concerns. Despite the sea changes in the nature of markets and regulatory upheaval in the United Kingdom, the City sailed on. In hindsight, the uncertainty risks associated with the global financial crisis and the EU's regulatory agenda pale in comparison to those posed by Brexit.

Close UK-US ties could irritate the EU

2017 ◽  
Keyword(s):  
United Kingdom ◽  
The United States ◽  
Content Type ◽  
White House ◽  
Bilateral Relations ◽  
The United Kingdom ◽  
Close Relationship ◽  
City Of London ◽  
The Relationship ◽  
The Eu

Subject Bilateral relations between the United Kingdom and the United States. Significance UK Prime Minister Theresa May has been criticised for her eagerness to form a close relationship with US President Donald Trump, at a time when the new administration in Washington is lurching from crisis to crisis. However, as the United Kingdom heads towards negotiations on leaving the EU, it needs good relations across the Atlantic more than ever. Impacts Trump’s plans to roll back financial regulations will increase pressure for similar moves in the City of London. Good UK links with Republicans in Congress will be just as important as good relations with the White House. Investigations into links between the Trump administration and the Kremlin have the potential to overshadow other bilateral relations. The tone of the relationship will also be affected by the success or failure of Trump’s state visit to the United Kingdom later this year.

A united EU front points to tough Brexit negotiations

2016 ◽  
Keyword(s):  
United Kingdom ◽  
Domestic Politics ◽  
Member States ◽  
Technical Aspects ◽  
Content Type ◽  
Eu Member States ◽  
The United Kingdom ◽  
Article 50 ◽  
The Eu

Significance European leaders are hoping for the best but preparing for the worst as they await negotiations on the United Kingdom's departure from the EU. A chaotic exit has not been ruled out, although cooler heads are likely to prevail eventually. Impacts The first months after Article 50 is invoked will be dominated by technical aspects; political negotiations may not begin before 2018. UK failure to take sufficient account of domestic politics in other EU member states is likely to be an obstacle in the negotiations. Governments under pressure from populist parties will be keen to ensure that the United Kingdom is not seen as better off after it leaves.

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