TheCityUK’s report sets out its vision for the UK’s financial and professional services industry following the Brexit vote.
The outcome of the Brexit vote left the UK’s financial and professional services sectors evaluating their future relationship with the European Union (EU) and how these crucial industries could navigate any short-term uncertainty to continue their historic and longstanding relationships with key trading partners.
Unsurprisingly, the importance of maintaining access to the European single market through passporting mechanisms topped the list as a key requirement. But it also stressed the need to be aware of, and explore, opportunities beyond Europe, with Chinese and Indian markets representing strong growth opportunities.
London is already well placed to cement trading relationships with developing economies around the world. The UK remains the global leader in fixed income, currencies and commodities (FICC) and demonstrated its position of strength in the global foreign exchange market by executing around $2.15 trillion in the six month to April. Moreover, it remains the second largest centre for debt financing globally after the US and recently surpassed Singapore to become the second largest offshore RMB clearing centre.
Overall, the report identifies five broad goals for London to work towards:
1. Connect globally by maintaining an effective UK-EU relationship and sustain market access, while also strengthening ties with developed economies and emerging markets (China and Indian).
2. Drive national growth by building on its strong national footprint and create more connected regional centres with specialist skills and expertise in areas such as emerging technology, middle and back-office.
3. Expand its services and retain its position as the global leader in areas such as capital markets, legal services and infrastructure financing.
4. Innovate, disrupt and scale: continue to harness the momentum gained in London’s burgeoning FinTech sector to see the UK become a centre of excellence and a natural home for the next generation of financial and professional services.
5. Build skills and attract talent through developing local talent, whilst retaining access to a diverse and global workforce with next-generation skills.
The full CityUK report can be viewed here.