Let us work with the City, beg German finance firms

EUROPEAN financial firms need to maintain full links with the City of London after Brexit – or risk serious damage to business in the EU, a top investment body has warned.

In one of the most significant interventions so far by a foreign finance group, the German Investment Funds Association (BVI) warned Brussels against rushing to change the rules.

The BVI said ‘unhindered access’ to the UK’s investment industry was vital.

It suggests increasing alarm on the Continent that Brussels could seriously harm EU businesses by erecting new trade barriers to punish Britain.

Brexiteers have long argued that the City’s global importance will help Prime Minister Theresa May get a good deal with the EU.

The BVI, which manages more than £2.6 trillion on behalf of 50 million customers, said ‘proper and unobstructed’ links with the UK are necessary.

The City’s Financial Conduct Authority watchdog (FCA) and Bank of England have both called for a Brexit deal which allows trade in financial services to continue easily.