The City of London could face significant disruption in the aftermath of Brexit because of a reliance on ‘passports’ to do business in other European countries, according to Financial Conduct Authority figures published by the Treasury Select Committee.
The figures revealed that 5,500 UK registered companies (many in the City) require passporting rights to conduct business in other Member States. The passports allow financial services companies licensed in one state to conduct business across the EU rather than having to register in individual counties. Experts including Treasury Select Committee Chairman Andrew Tyrie have warned that leaving the EU could mean UK companies lose such rights. Such a decision could also affect UK, Japanese and Swiss banks using London as a hub for passporting into the EU.
Mr Tyrie has called for the issue to be a priority for ministers.