Brexit: EU investors 'moving to London to benefit clients' says expert
When you subscribe we will use the information you provide to send you these newsletters.Sometimes they’ll include recommendations for other related newsletters or services we offer.Our Privacy Notice explains more about how we use your data, and your rights.You can unsubscribe at any time.
European investors are moving their operations to London so as to meet the needs of their business clients despite claims from ultra-Remainers that the City would lose out on investment after Brexit. London and Brussels took made headway towards an agreement on financial services, with both sides agree to a draft “memorandum of understanding” (MoU) over a new mechanism to sort out market regulation.
Global business developer Hilary Fordwich told RT’s Boom Bust programme: “Bovill, that is a financial services consultancy firm, back in January only two months ago, released a report that stated over a thousand EU banks, insurers and asset managers were opening offices in London so that they could better serve their European customers.
“So I think you’re seeing that a lot of these EU investors and EU firms are also moving to the City of London.
“They are doing so regardless of the MoU being signed or not.
“As usual the only thing that is usual is business is carrying on as usual.”
JUST IN: French fishermen panic as just 23 allowed in UK waters
Negotiations over the MoU have been taking place between the UK and EU will a deadline for negotiates set for the end of this month.
Under the regulatory framework agreed last week, Brussels could grant UK financial firms the same recognition as EU ones but stop short of providing firms with full equivalence.
To grant full equivalence, the EU would give content on 40 separate areas of activity.
So far, London has granted the EU equivalence in 17 areas but Brussels has only granted the UK similar agreements in two.
Brexit: UK 'can be a global trading nation without EU' says MP
Although some firms have relocated to Amsterdam, in particular in the derivative and share trading sector, estimates have shown only 7,600 jobs have been relocated to the EU from the UK.
However, the Bank of England must now be notified before doing so in order to restrict the number of firms that are looking to leave Britain.
In a statement last week, the Treasury said: “Technical discussions on the text of the MoU, which was agreed in a Joint Declaration on Financial Services Regulatory Cooperation alongside the Trade and Cooperation Agreement, have now been concluded.
“Formal steps need to be undertaken on both sides before the MoU can be signed but it is expected that this can be done expeditiously.
Angela’s lost control! Brexiteer says Merkel’s EU power dwindling [Latest]
Boris Johnson faces demands to ‘abolish’ the BBC ‘Get rid of it!’ [Video]
Britain’s vaccine success ‘got under the skin’ of VDL [Update]
“The MoU, once signed, creates the framework for voluntary regulatory cooperation in financial services between the UK and the EU.
“The MoU will establish the Joint UK-EU Financial Regulatory Forum, which will serve as a platform to facilitate dialogue on financial services issues.”
Since Brexit, the EU and UK have clashed repeatedly over financial equivalence firms based in Britain.
However, the EU has so far refused to do so, meaning investors must now operate in between the two regulatory jurisdictions.
Source: Read Full Article