How the City can gain from Brexit

The Daily Tele­graph

The Week - - City - Jeremy Warner

“The City, it scarcely needs say­ing, is far from happy about Brexit, and is par­tic­u­larly un­happy about the way the ne­go­ti­a­tions seem to be go­ing,” says Jeremy Warner. One se­nior banker puts the chances of reach­ing a de­cent deal for fi­nan­cial ser­vices at less than 10%. But beyond the grim fore­casts, it’s pos­si­ble to dis­cern a new fu­ture, “given the po­lit­i­cal will”. If Brexit pro­vides an op­por­tu­nity to re­form acres of EU “reg­u­la­tory gob­bledy­gook”, the City should “at­tract risk man­age­ment of huge amounts of ad­di­tional off­shore in­ter­na­tional cap­i­tal”. No­body is ad­vo­cat­ing com­plete dereg­u­la­tion: an “un­safe” sys­tem is “more likely to de­ter cap­i­tal”. But mak­ing com­pet­i­tive­ness a pri­or­ity is prefer­able to seek­ing “reg­u­la­tory equiv­a­lence with Europe”, which would con­demn us “to rule-tak­ing with no say in the way the rules are made”. What the Con­ti­nen­tals fear most is a break­away City that can com­pete on its own terms in­ter­na­tion­ally, “leav­ing the EU an en­tirely closed zone for fi­nance”. Get the reg­u­la­tion right, and “what the UK loses on one hand, it may gain on the other”.

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