City of London will bounce back despite Brexit: Mayor

The Brexit vote has shaken the City of London but will not destroy it despite creating uncertainty, the newlyinstalled Lord Mayor of the financial hub said. Speaking at his offices opposite the Bank of England, Andrew Parmley spoke of his concerns about attracting high-skilled workers and how City firms will be able to do business in the European Union after Britain leaves. ‘Storms come around but we weather them every time,’ 60-year-old Parmley, the Cityís 689th Lord Mayor in eight centuries, said in an interview at his official residence Mansion House.

The Lord Mayors rule over the Square Mile, an area with 8,000 residents which every day hosts some 450,000 employees, mainly in the financial services sector. Parmley officially took up the post on November 11 in an environment that he said presented ‘some challenges’, following Britainís vote on June 23 to leave the EU. The referendum result was a shock for the City, raising fears that it could lose its topflight global status alongside New York.

The main concern for the City is the loss of passporting rights, a money-saving mechanism that allows financial products approved by a single regulator in a member state to be sold in the entire European Union. Losing this advantage could push some companies to move at least some of their activities to continental Europe in order to be able to continue to do business.

‘Some businesses have undoubtedly made plans to relocate,’ Parmley said, although he added there have been no major announcements as ‘most people are still waiting’. — AFP