Open Europe, a leading think tank, has today warned that banks could move assets out of UK by 2017 if ‘EU passport’ is lost as up to a fifth of the banking sector’s annual revenue is estimated to be tied to the passport.
Commenting on the warning, Craig James, CEO of the UK’s leading e-money and payment regulatory specialist, Neopay, said:
“European passporting is vital. With it, firms only have to establish a business in one country and have a primary relationship with just one government and one regulator. EU passporting leads to reductions in costs not only for firms but also for the taxpayer and consumers, making it easier for firms bring innovative new products to market. With passporting, bureaucracy is significantly reduced while firms still work to meet strict regulatory requirements and ensure consumer protection is still of the utmost importance. It’s a given fact that passporting leads to a much more efficient and dynamic market that works to benefit everyone. In our view it is crucial for businesses to retain the ability to operate across the EU under one licence in the wake of Brexit and we want to see that right to trade cross-border protected above all.”