City Corporation calls on Conservatives to avoid Brexit cliff-edge
The City of London Corporation is calling on the Conservative Party urgently to work with their European Union counterparts to avoid a damaging cliff-edge that could hit economies on both sides of the Channel.
The City Corporation is today (1 October) hosting a roundtable at the Conservative Party conference in Birmingham focusing on the future of UK financial services after Brexit. John Glen MP – Economic Secretary to the Treasury – will be speaking at the event, which is being held in partnership with the Centre for Policy Studies.
A key topic of discussion will be mitigating cliff-edge risks for the sector. Finding a solution to contract continuity issues is particularly pressing as it could threaten the performance of cross border insurance, derivatives and even pensions arrangements.
Other cliff-edge concerns include: ensuring that cross border data flows can continue, ensuring that court judgments can still be enforced in each other’s jurisdictions and the operation of clearing houses (CCPs).
Securing a transition period and delivering a UK-EU trade deal that adequately covers financial and professional services are also vital to the sector’s long-term competitiveness.
Leading the City Corporation’s attendance at the Conservative Party conference, Policy Chairman Catherine McGuinness said:
“With less than six months to go until Brexit, negotiations are entering a critical phase. Both the UK and EU urgently need to address issues that could prevent the industry from servicing their clients and, in turn, destabilise markets as well as hitting consumers and businesses on both sides of the Channel. It is in neither side’s interests for us to stumble over the cliff edge and jeopardise financial stability.
“Firms need clarity on Brexit in order to continue to drive investment and create jobs across the country. The Conservatives should work to ensure both sides take steps that mitigate potentially damaging financial outcomes.
“Beyond March 2019, the UK financial and professional services industry must adapt quickly to an evolving global environment. The City needs to strengthen its connections with fast-growing economies across Asia as well as longstanding partners such as the USA and Switzerland. Tapping into nascent markets such as green finance and building on our existing expertise in fintech is also crucial to ensuring the sector’s long-term competitiveness.”
Notes to editors
The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk