Executives from Aviva, Prudential, Fidelity, Allianz Global Investors and JP Morgan have backed a report calling for a priority deal for financial services firms when Britain leaves the EU and criticising third-country regimes.
According to Sky News, which obtained a final draft of a report by financial and professional services industry body the International Regulatory Strategy Group (IRSG), City firms are warning leaving the EU's passporting regime would pose serious risks to London.
IRSG is chaired by former Treasury minister Mark Hoban and includes executive board members from Allianz Global Investors, Aviva, Fidelity, Prudential and JP Morgan.
Produced by law firm Hogan Lovells and lobby group TheCityUK, the report - entitled The EU's third country regimes and alternatives to passporting - argues that avoiding creating new barriers between the UK and the European Union is essential post-Brexit.
"Failure to do so would reduce stability, and hinder markets in their role of channelling savings into investment and of creating jobs and growth," it said.
The report criticised the lack of definition over equivalence, which would enable firms to trade across EU borders, and raised "serious concerns" around third country regimes such as their unpredictability and the ability of the EU to vary or withdraw designations with minimal notice.
Overall, it concluded third-country regimes "do not provide a long-term, sustainable solution for the UK-based industry as a whole to access EU markets", Sky reports.
The report urged that transition arrangements are concluded "as quickly as possible" until a negotiation settlement is agreed, in order to maintain continuity.
This latest report highlights the City's opposition towards the government's plans, with Prime Minister Theresa May recently stating Britain will not be able to pick and choose elements of single market membership.
Speaking to Sky News over the weekend, she indicated she is leaning towards a 'hard' Brexit, which would prioritise immigration over access to the single market.
The IRSG report is due to be discussed by regulators and Whitehall officials this week.
The chairman aims to shore up morale
UK economic headwinds are building
Three step reporting process
SJP academy hired 35 grads in May
Three advisers have their say…