Latest posts by Julia Shudrik (see all)
- ‘Champagne fraudster’ Alex Hope gets longer jail sentence - 28 Sep 2016
- Credit Suisse names senior adviser - 27 Sep 2016
- UBS axes 56 Luxembourg jobs to save costs - 27 Sep 2016
According to a report by the Financial Times, senior London bankers will instigate the government to negotiate a special Swiss-style trade deal with the European Union in order to retain European clients.
The FT made an announcement that the British Bankers’ Association have prepared a scheme according to which the UK banks get access to the European Union single market. The EU banks get access to the UK market in return. The scheme is expected to be presented to Theresa May this September.
Swiss insurers have an unlimited access to the EU market. In return, they have to ensure that the market’s regulations remain the same. However, the Swiss banks abide by slightly different financial rules.
The current organisational set-up of EU enables banks in the UK to use a “passport” to access the EU single market of 28 nations.
The British exit from the European Union put the deal in jeopardy as the agreement is dependent on the movement of people and contributing to the EU budget. After leaving the EU, both of them are complex to maintain. Those in favour of the exit claimed that as a result of Brexit the immigration control will become tighter and savings will increase because the UK will no longer have to contribute to the EU budget. In accordance with a confidential Deutsche Bank correspondence which Business Insider got a glimpse of last month, the investment banks shifting operations abroad in the event of the UK losing its access to the EU single market will benefit from a “first-mover advantage”.
The internal note announced that the bank’s rivals are likely to increase the number of operations in the countries where they have subsidiaries, such as Germany, Luxembourg Ireland.
Jamie Dimon, CEO of JPMorgan, warned that because of the latest events the bank might be left with no other choice but to move thousands of staff members out of Britain. The co-head of Goldman Sachs International Richard Gnodde, when asked about the post-Brexit scheme of actions, did not deny the possibility of moving all of the bank’s 6,500 UK staff members to Europe.