David Davis Seeks Vision for Post-Brexit for Financial Services

Photo by: Robert Sharp

David Davis has pledged to protect talent within financial services after Brexit, as he presents his clearest indication so far regarding the thinking of the government for the sector.

Talking at UBS, the Brexit secretary set out his vision of the future relationship of the City with the European after March 2019, based on three key platforms: ensuring consumer protection, protecting financial stability, and supporting the system that was built since the crash in 2008.

A major part would be the protection of the “mobility of workers and professionals across the continent,” said Davis. “Whether this means a bank temporarily moving a worker to an office in Germany, or a lawyer visiting a client in Paris, we believe it is in the interests of both sides to see this continue.”

A bill on immigration , which will be launched in 2018, “will set out in more detail what this new system will look like,” added Davis, highlighting that the government had been listening to the concerns of the sector regarding talent.

“While this [bill] will mean we’re better able to control the numbers of people coming to the UK — it doesn’t mean pulling up the drawbridge. That clearly wouldn’t be in Britain’s interest.”

Davis also suggested that the government was minded to embrace some proposals that were put forward in the recent blueprint for the City after Brexit of IRSG, referring to the report as putting forward “some innovating ideas on possible new frameworks,” especially around exemption regimes and mutual access regarding the basis of regulatory alignment.

And Davis was unambiguous when regards to clearing, which he stated must remain in London. “This is not, a zero-sum game,” added Davis, noting that fragmentation would boost costs for financial services firms and connected businesses across the European Union. (continued on next page)