Boris Johnson’s Brexit deal does not include an EU-wide arrangement regarding financial services. This has resulted in many financial companies that deal with the European Union moving to EU member states, if only for a brief period. A rough deadline for these details on the financial service arrangements being clarified was set for March in the trade deal.
Financial and political expert Helen Thomas insisted the Government will be focussing on this integral caveat of the new relationship.
While speaking on CGTN’s The Heat, Ms Thomas said: “There are clearly going to be shifts.
“Already staff have been moved to places like Dublin or Luxembourg for companies that wanted to have a presence on the ground in the EU.
“No one should be under any illusion, there is a break here and there is a shift in a way the regulation works.
“Having said all of that, London for centuries has been a centre for commerce, that is not going to change.
“There is certainly going to be a lot of financial services people who want to live and work in the UK.”
Ms Thomas reiterated the UK Government would be pushing hard to meet the March deadline.
She said: “Many people have said it is going to take a long time to thrash it all out.
“But given the importance of financial services to the UK, it will clearly be a priority of the Government to ensure that that March deadline that has been discussed…that something certain will come out of this because this is such an important sector to the British economy.”
Acquis CEO Alasdair Haynes argued that Boris Johnson had scored an own goal by failing to agree on how financial services would continue post-Brexit in the trade deal.
While speaking to Bloomberg, Mr Haynes said the UK should not expect to be granted equivalence from the EU.
He added that many companies that wanted to invest in Europe have moved operations to European Union member states.
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He said: “The problem that we have got with what has happened here with Brexit is that by the UK losing its passport and a share trade obligation in Europe, it means the EU investors have to trade Europe and UK investors for European shares will either have to go to Europe or trade in London.
“You can clearly see the choice being made is that they would rather trade in Europe.
“Which appears to me to be a very much own goal, a spectacular own goal.”