Whatever happens now, Brexit has inflicted serious damage on UK financial services

Whatever happens next, Brexit has inflicted unprecedented damage around the UK's financial services industry, the founder and CEO of 1 of the world’s largest independent financial advisory organisations has warned.

The finance sector, which makes up about 6.5 per cent of Britain's GDP, is heavily dependent on Britain’s connections with the EU’s single market and may face significant disruption in the event of a no deal Brexit.

But regardless of how the negotiations pan out,Nigel Green of deVere Group says the damage has already been done.

He said: “The actual procedure for leaving the EU itself is now increasingly irrelevant. Indeed, whether or not the UK didn't leave, unprecedented harm to britain's financial services industry was already done.

“Following years of uncertainty along with a lack of firm leadership from all parties, firms across the sector have had to consider precautionary action to safeguard their interests.

“Typically, this involves relocating parts of their business or key staff to places like Paris, Luxembourg, Dublin, Frankfurt and Amsterdam, or establishing legal entities in the EU. Sometimes this has been done publicly, but a lot has, to date, not been disclosed, therefore we still can't know the full scale of the situation.”

Green continues: “With no meaningful accessibility EU's single market, britain's financial services sector is bracing itself for which is likely to be an extended and steady decline, ultimately losing its coveted ranking because the world's top financial centre.

“The possible lack of confidence in the UK's financial services sector, which contributes around 6.5 per cent towards the country's GDP, will in the end hit jobs and also the government's tax base.”

“The steady drain of investment, talent and activity away from UK financial services could possibly be stopped, the situation might be recoverable, but confidence needs rebuilding fast.”