Financial services see growing risks a year before Brexit, finds ACCA

Of the 250 professional accountants working across the financial services sector who were surveyed by ACCA, almost half (49 per cent) stated that the risks posed by Brexit are greater than the opportunities (compared to 14 per cent who believed the opposite).

Last year this negative imbalance was 40 per cent to 16 per cent respectively and this year it increased to 49 per cent and 16 per cent respectively.

The survey also found that the number of respondents making Brexit contingency plans has increased from last year. Yet over a third say they will have either little or no preparation plan in place by the time the UK formally leaves the EU in a year’s time.

At the same time, views are more balanced regarding the long-term impact of Brexit. One third (33%) expect that in five years’ time the opportunities will outweigh the risks, while 32% state the opposite.

Maggie McGhee, director of professional insights at ACCA, said: “While this is only a snapshot of the large and diverse FS sector, the findings reflect the views commonly heard from our membership. While the proposed transition deal means business as a whole has some degree of clarity, the race is now on to secure a favourable Brexit outcome for FS.

“At the same, government should not lose sight of the long-term opportunities for Brexit. A favourable regulatory environment could benefit financial services if it facilitates improved relationships with the global economy.

“Yet to achieve the right levels of cooperation and coordination with our European and global partners, the work has to start now.”

However, in more positive Brexit news, a seperate survey carried out by Reuters has found that the number of finance jobs to be shifted out of Britain or created overseas by March 2019 as a result of Brexit has dropped by half compared to six months ago to 5,000 roles.

A Reuters survey of 119 firms, following up on a survey published in September 2017, also found that Paris has overtaken Frankfurt as the most popular destination for the new roles.