Brexit: “In? Out? What’s It All About” for Financial Services?

Brexit: “In? Out? What’s It All About” for Financial Services?

The financial services sector’s importance to the UK’s economy and the impact on leaving is crucial to the BREXIT debate, as:

  • The FS account for 8% of the country’s GDP, and around 3.5% of all British job
  • Financial services and related professional services accounted for 11.8% of UK GDP 
 in 2013 and employed over 2.1million people
  • Financial services accounted for 11.5% of total tax receipts for 2013 and 2014.
  • In addition, the financial sector generated a trade surplus of £67 billion in 2013, more 
 than all other net exporting industries. FDI in the industry was £100 billion.

…Taken from Nasdaq’s “Brexit – The Pros & Cons”.

‘BANKERS CAN’T STAND THE IDEA OF A BRITAIN-LESS EUROPE’

According to a recent CNN Money article giving an Outsider’s view on Brexit:

Goldman Sachs commented – ‘leaving the EU could cause the pound to crash by as much as 20%’

Nomura warned Brexit could even push the UK into recession

Deutsche Bank have hinted they might move its business away from Britain if the UK choose to leave.

JPMorgan Chase and HSBC have both suggested leaving would result in jobs moving outside the UK. Citibank have gone even further saying BREXIT could cost the UK 75,000 jobs by 2030.

So while the general public and politicians seem to be divided on the BREXIT debate, Financial Services and in particular banks seem to be strong in Campaigning to stay in and are already considering contingency plans for if BREXIT happens. Many ‘out’ campaigners in FS however point to the view that UK regulators will have the power to implement new legislation, thus creating a regulated framework more suited to UK businesses. Also an out vote could mean investments free of EU regulatory burden tracking a liberated upbeat economy.

Whatever the outcome Firms need to start taking business critical decisions and planning for every eventuality BREXIT could bring.

About Patrick Doran

The DSW team is led by Patrick Doran who founded the company in 1999. He has managed award winning sales teams, led the learning and development function of a multi-national organisation, operated as an executive coach to Chief Executives and been a Non-Executive HR Director for a major Life Office and Investment House; being responsible for the training and development of both the regulated sales and management populations and all back office personnel - in excess of 6,000 employees.