Wednesday, 28 June 2017

Liquidity - The currency of negotiation for financial services


As we enter into the start of negotiations, both the UK and the EU are publicly staking out their opening positions in an attempt to anchor the other side’s ambitions. Reports of banks moving en-mass to Frankfurt, Paris or Dublin are readily met by confident assertions that the bulk of the industry will remain in London.

In our latest research paper, Richard Ayres analyses the interests behind the positions concerning financial services and concludes that:
  • If the UK government rapidly and credibly commits to a pro-growth agenda for the financial services industry, then the EU’s best strategy will be to seek an accommodation.
  • Such an agenda must focus on protecting and serving demand from the UK’s global customer base while developing a regulatory regime that promotes growth and innovation.
  • A supra-political Capital Markets Union (CMU) could be in the best interests of both parties whereas New York would be the main beneficiary of a failure in the negotiations.

Click here to download the full report.

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