No-deal Brexit bad for UK financial services jobs, says CISI survey

by Lora Benson | Oct 05, 2020

 

An overwhelming majority of those working in the financial services profession believe a no-deal Brexit will have a negative impact on UK financial services sector jobs, according to a survey by the Chartered Institute for Securities & Investment (CISI).

 The CISI, the not-for-profit chartered professional body for those working in capital markets, wealth management and financial planning, undertook the survey 23 July – 23 September 2020. Over 1,000 respondents offered their views on the question: “In the event of a no-deal Brexit, what impact do you think this will have on jobs in the UK financial services sector?”

Of those who responded, 86% said there would be a “negative” impact, with 8% believing the response would be “neutral” and 6% saying there would be a “positive” impact.

Comments from those who thought a no-deal Brexit would have a negative impact on jobs included:

“Loss of passporting rights as a start. Obviously it will have a massive impact on the UK financial services sector and all the related sectors around it (accountancy, law firms, consultants and other providers etc).  In fact it is already happening.”

“The total failure of the UK government to grasp how the Single Market works means that there will be no deal.”

“We have already had new regulations because of Brexit in our company and I think we will have more in the near future. This might involve learning new law, procedures and regulations. Our customers are unhappy and we can see increase in complaints.”

“No deal Brexit creates a near term negative influence for two reasons, first, the UK financial services international positioning needs to become clearer, second, losing its ‘access to EU’ status. Medium to long term prospects remain to be seen, but could swing either way. Conversely, for U.K. inwardly focussed job roles the outlook could be more positive with a no deal Brexit .”

“The economy is already under impact due to COVID and no deal Brexit will add to markets no confidence.”

“Already lost my job due to covid but many companies are planning further job cuts in case of hard Brexit”

“A no deal brexit will increase the trend to use offshore/onshore service providers with most work offshore.”

Simon Culhane, Chartered FCSI, CISI CEO said: “This survey demonstrates a real belief amongst our members that the financial sector is seriously going to suffer in a post Brexit world. For the UK, this should ring alarm bells as 1 in 14 UK-based workers (over 2.3 million people) are employed in financial and related professional services, with two-thirds outside London. So the potential for a no-deal Brexit to cause damage to jobs in the sector is huge.”