The negotiations between the UK and EU about Brexit and the UK´s financial services sector might show some different outcome than earlier expected. There are expectations that the City, the financial center in London, might get some special “arrangements” for business operations.
According to Bloomberg goverment survey, most EU-goverments see the unity of EU as priority in the negotiations although most leaders think that UK should not get any priviledges after the country decided to leave the EU. But this might not affect the City and the financial industry as such.
As Britain leaves the EU in March 2019, one of the risk scenarios for the whole Europe is, that financial markets will split to several financial centers like Frankfurt, Paris, Amsterdam or Luxembourg and the markets will loose the cohesion.
This is one of the reasons why the CEO of Lloyds, Inga Beale, is hoping to see some special arrangements for the City. The British insurance company has already made its own decision and opened a new subsidiary in the continent, in Luxembourg.
The London financial center is one of the world largest, but during years the sector has also transformed and developed new innovations. Fintech in London is one of the growth areas in Europe and this trend is expected to continue. London is said to be the 4th largest fintech hub globally after San Fransisco, Beijing and New York. Last year the fintech companies got 2,4 billion pounds funding from investors.