24 November 2017

ACCA: The impact of Brexit on financial services

With uncertainty surrounding the negotiations on the UK’s exit from the EU, financial services firms in London, across Europe and all over the world still have no clear answers as to what the situation will be post-2019. After the UK becomes a third country, the EU will lose its main financial markets centre, and Brexit will mean the end of City of London firms’ automatic license to do business throughout the EU, the so-called passporting rights. 

Considering the significance of the financial services sector for the European and global economy, the stakes could not be higher.  And while Brexit is a very important issue, the EU has also its own priorities for the future.

It is in this context that the European Movement International (EMI) and ACCA (Association of Chartered Certified Accountants) brought together policy makers, industry representatives and many other civil society stakeholders in Brussels to discuss the potential impact of Brexit on the financial services industry.

Jo Leinen MEP and President of the EMI said: 'The signal Brexit sends to Britain’s global partners can only be negative. It adversely affects the UK’s economy, hurts its main industry, weakens its standing in the world, diminishes its claim of being an open, trading nation and reduces its influence. It also compromises its security and its ability to shape the global decisions that affect it. Whichever way one looks at it, Brexit will have a regrettably negative effect.'

The lively experts panel discussion, moderated by EMI’s Secretary General Petros Fassoulas, confirmed that fragmentation and uncertainty are the enemies of financial markets. All speakers stressed the importance of early clarity on transitional arrangements and contractual continuity, so businesses and the financial industry can plan accordingly.

Full press release

© ACCA - Association of Chartered Certified Accountants