Damage to the UK’s financial services sector due to Brexit is ‘unprecedented’, the CEO of the deVere Group Nigel Green warns.
Green explained that the damage to this sector, which is understood to account for 6.5% of the UK’s GDP, ‘has already been done’ in spite of the process of leaving the EU.
The CEO, which leads one of the prime independent financial advisory organisations, said that this damage, ‘will inevitably hit jobs and the government’s tax base.’
He explained that at this time companies were responding to the uncertainty caused by the Brexit by taking action to protect their interests.
‘Typically, this involves relocating parts of their business or key staff to places like Paris, Luxembourg, Dublin, Frankfurt and Amsterdam, or setting up legal entities in the EU. Sometimes this has been done publicly, but a lot has, so far, not been disclosed, so we still can’t know the full scale of the situation.’, he said.
However, with the chances that there will no longer be the same access to the EU single market as before, ‘the UK’s financial services sector is bracing itself for what is likely to be a long and steady decline, ultimately losing its coveted ranking as the world’s top financial centre.’
The CEO concludes by saying that the ‘situation might be recoverable’ but that confidence would need to be rebuilt ‘fast’, in order to prevent a further drain of talent and financial activity from the UK.