Will London Lose Position as Leading Financial Center After Brexit?

The fallout Brexit could knock London off its pedestal as Europe's leading financial center, the professional services network PricewaterhouseCoopers said in its 2016 July/August report issued on Thursday.

MOSCOW (Sputnik) — London's gap with Luxembourg, Paris and other EU cities could also narrow significantly, the report reads. 

"The UK’s vote to leave the EU has put London’s position as a leading international financial centre under the spotlight… The loss of passporting could see London lose its place as the EU’s strongest financial centre as it would fall into 2nd place in our league table behind Dublin. Its gap with Luxembourg, Paris and other EU cities could also narrow significantly," the report reads.

Passporting rights enable UK-based financial firms, including over 250 foreign banks, to carry out financial services across the European Union.

"Other factors such as access to skills and a strong and stable legal system should see it remain as a leading global financial hub in the years ahead. But the potential loss of EU market access poses a challenge for many FS businesses."

Business leaders based in London should focus their efforts on lobbying UK Government and EU politicians to retain as much EU access as possible, including retaining EU passporting rights, the report recommends.

On June 23, the United Kingdom held a referendum to determine whether or not the country should leave the European Union. According to the final results, 51.9 percent of voters, or 17.4 million people, decided to support Brexit, while about 16.1 million opposed it.