New City of London Initiative to Assist Government with Brexit Negotiations, According to Reuters

Veterans from London’s financial services sector are establishing a forum to assist the British government in its Brexit negotiations with the European Union, according to sources involved in the initiative.

The unexpected decision for Britain to leave the EU has compelled financial institutions to reevaluate their business strategies, which were traditionally reliant on the EU “passport” system that allowed them to operate throughout the region from a London base.

Daniel Hodson, a former CEO of the London derivatives exchange LIFFE, which is now part of the Intercontinental Exchange, indicated that the newly formed group—initially referred to as City United—intends to unite individuals from the financial industry who hold both pro- and anti-Brexit views.

As a director of Vote Leave, Hodson was actively involved in advocating for Brexit during last month’s referendum. Other notable members include Anthony Belchambers, a former head of the Futures and Options Association, and Graham Bishop, a consultant with a pro-EU stance who has advised EU institutions.

Hodson emphasized the necessity to effectively engage individuals from both sides of the Brexit divide, acknowledging the political realities at play. The group, which plans to be renamed the Financial Services Negotiation Forum, is set to have a formal launch in September.

The City of London Corporation, which oversees the financial district, supported remaining in the EU, while TheCityUK, a body promoting the UK’s financial sector, cautioned that Brexit could jeopardize the industry’s competitiveness.

Hodson noted that government statements suggest that full membership in the EU’s single market is now off the table, indicating that the financial sector must coalesce around a unified position to aid the government in trade negotiations.

“Independence and fact-based analysis will be our guiding principles,” Hodson stated, highlighting TheCityUK’s continued involvement in their efforts.

Other proponents of the initiative lamented the pervasive bitterness within the City and called for a coherent strategy to bridge gaps between the leave and remain factions. Richard Tice, CEO of Quidnet Capital and co-chair of the Leave.EU campaign, asserted that the outcome of the referendum was decisive and that organizations like the City of London must now focus on effective implementation.

Neither the City of London Corporation nor TheCityUK provided comments on the matter.

The Chartered Institute for Securities and Investment (CISI) noted that, post-referendum, the financial sector has been lacking in robust and visible advocates during a period characterized by considerable uncertainty. CISI Chief Executive Simon Culhane remarked that while there have been many discreet discussions, they fall short of what is needed to provide guidance and assurance. The current atmosphere, he said, is one of silence and lack of direction.