The City of London Corporation's policy chief has expressed confidence that the UK capital will remain a global financial hub when the UK leaves the European Union.

Loss of passporting rights

Although many banks are looking at relocating some staff to other centres on the continent in case a post-Brexit Britain loses the 'passporting rights' that currently allow UK financial institutions to trade freely throughout Europe, Mark Boleat says that he does not believe many banking jobs will leave London at the end of the day.He told the French news agency AFP, “No one is going to say, 'We are closing down in London'. Banks have had contingency plans since before the Brexit referendum in some cases. They have known there is a possibility that Britain will not be in the single market – that has now been confirmed.”

Euro-clearing should remain in London

Mr Boleat accepted that many banks would “need to restructure what they are doing – perhaps cease doing a few things, in some cases build up business elsewhere in the European Union”.But he cited comments last week by Jamie Dimon, chief executive of JP Morgan, who stated that he did not foresee the need to shift many staff from Britain over the next two years because of Brexit.Mr Boleat said that, inevitably, some jobs would be relocated from London but argued that the future location of euro clearing – the processing of euro currency transactions – should remain in London.“The clearing is done in London because that is where the expertise is. That’s where the market is. Brexit will not change that,” he said. “Euro clearing is already a political football – but we hope that economic reality will determine the outcome, not a wish to have a trophy function move to another place.”

Minimal disruption

He added that if early agreement could be reached in the Brexit negotiations on the terms for exit and on the rights of EU nationals, “there will be the minimum of disruption to business and consumers in this country – and in Europe”.Mr Boleat, who steps down next month as policy chairman of the City of London Corporation, said, “We would hope that the negotiations go quickly and go well. On the whole, I think things are looking rather better (than they did immediately after last June's referendum).”Despite the policy chief's optimism, many banks are looking at opening subsidiaries elsewhere in London and HSBC has already stated it is set to shift 1,000 jobs to Paris, while Goldman Sachs is looking at moving 1,000 of its staff from London to Frankfurt.

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Additionally, the Lloyd's of London insurance market recently announced it was opening a new operation in Brussels because of Brexit, though it accepted the vast bulk of its business would remain in London.Mr Boleat described Lloyd's as “a unique organisation”, adding, “It’s not a company, it’s a market. They will have to do something if Britain is outside the single market. They have spent a long time looking at location. They have decided it’s Brussels.” But that would become home to only part of their business, he said. “It’s Lloyd’s of London. The vast bulk of its business will stay in London. It will not be Lloyd’s of Brussels.”For related news and features, visit our Brexit section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit  

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