CBI urges for soft Brexit financial services deal

CBI urges for soft Brexit financial services deal

The financial services sector will be much better off if the UK replicates European Union regulation after Brexit, according to the Confederation of British Industry (CBI).

The employers' lobbying organisation has compiled a 90-page report examining the impact of the UK’s exit from the EU on a variety of sectors of the economy.

The CBI said some sectors would benefit from being able to diverge from current EU rules, but even those sectors would suffer because of the overall harm it believed would be done to the economy by Brexit.

The sectors it highlighted as potential beneficiaries included defence and construction, but not financial services.

On the financial services sector, the CBI said: "Given the size and importance of the financial services sector to the UK, and the consequences for financial stability if there is regulatory failure, the UK necessarily has a strong interest in ensuring that the future regulations that apply to its financial institutions work well for its businesses.

"Influence is particularly important for ensuring that the rules that are applied to the sector are appropriate for the UK’s unique financial hub, particularly where the UK possesses businesses that are very specialised."

As FTAdviser previously reported, David Davis, the secretary of state for exiting the EU, said there were "no guarantees" financial services will get a bespoke arrangement in any future agreement between the EU and the UK.