Brexit infographic: myth 3 - financial services
Myth 3 - Swiss financial services have thrived outside of the EU: this could be a model for the UK.
Some Eurosceptics look towards the Swiss financial services industry, which has thrived outside the EU, and believe this model could work for the UK. However, Switzerland’s relationship with the EU is complex and could not be replicated easily. Evolving legislation could push financial services activity back towards the Continent if the UK were to exit the EU, resulting in a gradual loss of business and investment. Indeed, we are already seeing new legislation that makes it increasingly difficult to do business in Europe from a non-European platform. Notably, some foreign banks that use the UK as a base for operating in Europe have suggested they would move to the Continent if the UK leaves.
However, we believe this is highly unlikely to result in a rapid loss of business. Additionally, given London’s history of financial innovation, supportive government policy and well-established role as a centre of global finance, there is scope to ameliorate the long-term consequences.