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The report Brexit’s Impact on Financial Services surveyed professional accountants working in financial services organisations around the world. It found that 40% of respondents viewed Brexit as posing a greater risk than opportunity, as opposed to only 16% who saw it as more of an opportunity than a risk.
Despite this, nearly a quarter (24%) had made no plans or were unclear over what to do – with a further 32% being only at an early stage of planning. Insufficient or unclear communication by government and regulators on the proposed approach was cited as the primary obstacle to better preparation.
Uncertainty over the negotiating stance by both the UK and EU in key areas such as equivalence and mutual recognition in the light of a potential ‘hard Brexit’ were among the major concerns.'
Responding to the survey Helen Brand OBE, chief executive of ACCA, said,
'The financial services sector has a key role to play in helping organisations navigate the challenges and complexities of Brexit but a lack of detail from policy makers in the UK and Brussels is hindering their ability to do so.
'While discussion over Brexit has focused on the effect on the UK economy, London’s status as a global financial hub means that the Article 50 negotiations have implications for financial services around the world. '
First-class financial services are integral to the UK but, as the world’s largest net exporter, they are also highly significant to economies in the Eurozone and beyond.
The industry occupies a premier position in the UK’s economy. It employs 1.1 million people, earns between £190bn and £205bn in annual revenues and generates an estimated £60bn–£67bn in taxes each year.
The UK is the world’s largest net exporter of financial services, and in 2015 the EU accounted for 41% of the UK’s total financial services trade surplus. The UK’s relationships with the EU and other trading partners are therefore critically important.