Will a Brexit damage the City?

With less than two weeks to go, the debate on whether the UK should remain or leave the European Union is heating up.

Back in April, Chatsworth’s research team polled over 12,000 members of the ACI Financial Markets Association, the largest global trade body representing the international currency markets, for their personal views ahead of the UK Referendum vote on 23 June.

Two-thirds (65%) of respondents believed a UK vote to leave the EU would negatively affect London’s position as the world’s largest FX trading centre, while 13% believed a Brexit would have a positive impact.

Now with the Financial Times Brexit poll tracker indicating a slim lead for the leave camp, it’s hard to tell which way the referendum will go. However, a growing number of bankers are warning of the possible damage a Brexit could cause to the City of London and the financial services sector. According to an article published on the Financial Times website, the City employs 2.2 million people across the UK. If the UK were to leave the EU, then it would no longer be possible for non-EU firms to headquarter European operations in London and continue to trade across the union without barriers. A Leave vote would likely see offices opened in Paris or Frankfurt whilst non-EU firm UK offices would be downsized, potentially putting jobs at risk.