JThe City of London has maintained its huge lead in financial services since Brexit despite warnings of a mass exodus from bankers, Britain’s latest European Union commissioner has said.
Instead of rapidly losing business across the Channel, British financiers have adapted, he told the Lords EU Affairs Committee.
Lord Hill, who advocated for the Remain campaign, said: “Many of us thought that after 2016 things would change quite quickly. My former officials in Brussels certainly thought they would.
“If I look at it, I’m more struck by the fact that London is still the biggest financial center in Europe. No other financial center in Europe has so far supplanted London’s place.”
The City “continued to do what needed to be done to continue to be able to trade. He did it quite quietly, quickly and efficiently,” Lord Hill added.
Although politics may still be hostile, “behind the scenes”, he said, regulators and companies are paying attention to each other’s measures to improve the way they do business, for example in the reform insurance around the rules of Solvency 2.
“It’s more nuanced behind the scenes than one might think of politics,” he said.
Instead of “killing each other” across the Channel, the British authorities and the City of London should take into account global competition and try to make the United Kingdom a more attractive financial center on the world stage, according to Lord Hill.
Britain should examine “the question of why companies choose to register in New York rather than choosing to register in London or elsewhere in Europe? The initiative in this area, to attract technology companies listed in the United States, is opening up”.
Lord Hill, who was Britain’s top diplomat in Brussels and was financial services commissioner until the Brexit vote, said a potential benefit of Brexit is the flexibility regulators have when operating in a single country instead of having to search for an agreement across the country. EU.
Instead, Britain can “easier manage more purposefully in one jurisdiction”, provided it stays within global rules.
Lord Hill said he was previously responsible for equivalence decisions, when the EU decides to declare that other countries’ financial rules are equivalent to its own and therefore grant more access to cross-border trade, and said found that it was “just a political process”. .