Reciprocal access to financial services between the UK and EU is “crucial” to the future of the sector, the report states, with 5,500 UK firms providing services to clients based in Europe and a further 8,000 EU-based firms providing services in the UK.
The 118-page report outlines the response from around 50 business sectors to one of the CBI’s biggest ever consultations.
The overwhelming consensus view from industry was a need for reassurance from government that free trade and immigration would not face negative repercussions and that proper interim measures should be put in place to ensure a smooth transition out of the union, the CBI said.
On immigration, which the financial sector said was dearly needed to secure high-skilled employees, the report stated: “Urgent guarantees are needed to allow EU migrants already in the UK to remain. This is vital for businesses in every sector. Businesses across the economy have invested in their workers from abroad.”
The importance of the financial sector’s international reputation was also a major concern in the consultation.
The report said it was “paramount” the UK retains its attractiveness as a global financial hub and added: “The UK plays a key role in international regulation and expertise and the reputation of the UK as a place to do business and a hub for financial services is critical.”
While so-called ‘red tape’ EU regulation can be costly, the CBI consultation found the majority view was these costs are “largely sunk for current regulation and seamless access to EU markets is a prize worth paying for”.
