MAKING A SUCCESS OF BREXIT
It will be crucial for the UK government to secure the means of continued reciprocal access for financial services between the UK and the EU. This is not just important for the UK, but for the EU, with 8,000 EU firms selling financial services into the UK or operating within its hub. The FCA further reported that nearly 5,500 UK firms are providing financial services to clients within the EU and EEA  .
Third party access or regulatory equivalence alone is not enough to ensure the continuation of the smooth flow of financial services between the UK and EU, as it is a patchy system that poses the risk of being changed or even removed at any given point in time.
It is paramount that the UK retains its attractiveness as a global financial hub from a regulatory, taxation and political perspective. The UK plays a key role in international regulation and expertise and the reputation of the UK as a place to do business and a hub for financial services is critical. So it is important therefore that the UK government and regulators continue to take an active role in EU legislation that is in development during the negotiation period. The UK must maintain its position as a global leader in, rather than a recipient of, financial regulations.
It is important for the financial services sector that the UK government commits to an immigration system that attracts the best global talent. The international success of the sector is built on attracting global talent and an openness to the rest of the world.
It will be important to secure agreed temporary transitional arrangements to allow both UK and EU financial services firms the time to adapt to any changes in our trading relationship. This time will ensure that all of our financial services firms will be able to continue to provide products and services to their clients – consumers and businesses in the UK and across the EU and EEA.
Early clarity that transitional arrangements will be developed for UK businesses across all sectors will provide the confidence to both UK and international financial services firms to continue operating their EMEA businesses out of the UK, whilst the exit negotiations are in hand.
For financial services at the CBI, contact: Flora Hamilton on 0207 395 8153 or Flora.Hamilton@cbi.org.uk
 FCA letter to Rt Hon Andrew Tyrie MP, August 2016