Brexit breakthroughs are helping the City end the year on a high.
Following the announcement that Theresa May and her EU counterparts had struck a deal that will allow them to move on to Phase 2 of negotiations, the Bank of England has unveiled plans to offer European banks an open door to London post March 2019.
The Prudential Regulation Authority has said it would permit big banks to operate on British soil through a ‘branch structure’ instead of having to become expensive subsidiaries, saving millions and acting as a deterrent for relocation.
It has been reported the move was made to force a similar gesture from the EU bloc.
But that hasn’t taken the sheen off what City Corporation policy chairman Catherine McGuinness described as “a welcome bit of news”.
“EU banks are a significant element of the 1.1 million jobs and £72 billion that the financial services sector generates in tax revenues each year,” she said.
“They are also one of the many elements, along with our openness and attractiveness to international business, that make us such an attractive global financial centre.”
“This development would provide greater certainty that businesses always crave. We are pleased to see this development and it is now up to our politicians and regulators to make sure this is delivered.”
