UK MP Simon Kirby, the city minister, will give evidence on the impact of Brexit on the UK’s financial services sector to the House of Lords European Union (EU) Financial Affairs sub-committee on Wednesday 19 October 2016. The committee will also hear from two senior officials from Her Majesty’s Treasury, Katharine Braddick, director of financial services and Lowri Khan CBE, director of financial stability.
Questions that the committee is likely to ask include:
- What is the Treasury’s current assessment of the financial services sector’s contribution to the UK economy and public finances? Are you modelling the impact of various Brexit scenarios on this contribution?
- What are the Treasury’s considerations for avoiding a ‘cliff edge’ at the point when the UK leaves the EU?
- Which government department will lead in negotiations on financial services? How will responsibility be shared with the departments for Exiting the European Union and International Trade?
- What are the main risks to achieving and maintaining third country equivalence?
- What do you think would be the effects of clearing houses relocating?
The House of Lords EU committee and its six sub-committees are conducting a coordinated series of short inquiries looking at the issues that will arise in the forthcoming negotiations on Brexit. Taken as a whole, this programme of work will be the most extensive and thorough parliamentary scrutiny of Brexit.
The EU Financial Affairs sub-committee is carrying out an inquiry into what leaving the EU will mean for UK, EU27 and non-EU financial institutions and service providers. It will also look at the options for a new relationship with the EU.
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The country is expected to survive the review, which it must do to retain its place in the European Central Bank’s asset purchase programme.
The bank believes that the battered UK currency, recently only just holding above the US$1.20 level, could be trading at US$1.36 by this time next year.
The group reports that currency fluctuations were less of a challenge to multinationals in the second quarter of 2016, but Brexit has since spelt a return to volatility.