The Strategist

British financial market could lose more than 200 thousand professionals

01/11/2017 - 16:09

General Director of the London Stock Exchange (LSE) Xavier Rolet said that British financial sector could lose about 232 thousand jobs due to Brexit. In addition, Head of the LSE fears that the country's exit from the EU could lead to even greater instability in the financial markets.

At today's meeting of the committee of the British Parliament on the financial markets, Xavier Rolet of the LSE showed data of EY consulting company. The paper suggests that Brexit endangers more than 232 thousand jobs in financial and international companies operating in the UK. Thus, the top manager more than twice raised its assessment of Brexit’s negative impact of the British financial market UK. Recall that he spoke about the risk to 100 thousand jobs earlier in September last year. In addition to the exodus of financial specialists from the country, Xavier Rolet is afraid that Brexit would cause new instability in the financial markets. "If we want to preserve stability and confidence of customers, we should avoid abrupt changes, allocate quotas and benefits to companies for a certain limited period in parallel with negotiations on Brexit", - said Mr. Rolet. 

Head of HSBC’s board shares concerns of Mr. Rolet: "London’s financial ecosystem can be compared to a tower in "Jenga" game: no one knows what will happen if just one small piece is pulled out – no harm or something more dramatic." In this regard, Head of HSBC stressed the need for introduction of a temporary transitional period for financial companies. It would be two or three years of keeping convenient operating conditions, regardless of outcome of negotiations between the British government and the EU. Thus, banks and other financial companies will have time to adjust to new rules, gradually restructure their operations and save maximal number of jobs.

Meanwhile, Prime Minister Theresa May in an interview with Sky News stated that Britain and the EU will be able to agree on mutually beneficial terms of building relationships, including for European companies in the UK. 

According to her, Brexit will let British authorities control laws and immigration within the country on their own, exactly for what people voted in the referendum.

At the same time, according to May, she will soon have more details about the United Kingdom’s plan of leaving the EU.

"I'll tell you know more details about the plan for the United Kingdom on how to conduct Brexit right", - said the British minister.

June 23, the United Kingdom held a referendum on the country's membership in the EU, and the European integration opponents won. 51.9% voted in favor of leaving the EU. May, who became prime minister after the resignation of David Cameron, has promised to follow will of the people and launch a two-year process of termination before the end of March 2017. 

Later, WTO Director-General Roberto Azevedo suggested that conditions of the United Kingdom’s presence in this structure will largely depend on circumstances of the kingdom's exit from the European Union structure.