With little progress made to flesh out the terms of Brexit in advance of formal negotiations, the banking community has begun to express concern. In particular, global banks have lobbied United Kingdom (UK) Prime Minister Theresa May to maintain financial passporting rights even after the completion of Brexit. It appears the industry is hoping to preserve some of the key benefits of European Union (EU) membership, including passporting and access to the single market.
The issue seems unlikely to gain traction as it would require informal negotiations prior to the triggering of Article 50 of the Lisbon Treaty and European leaders have already shut down the possibility of informal talks. David Davis, head of the UK’s Brexit department, did say, however, that the government was reviewing all of the risks posed by Brexit changes including the loss of financial passporting. These discussions come as industry leaders and even foreign governments, such as Japan, have warned that Brexit could cause many companies to leave the UK.