View more on these topics

MEP: EU exit would be ‘disaster’ for UK financial services

Euro-EU-Puzzle-Europe-700x450.jpg

Economic and monetary affairs committee chair and Liberal Democrat MEP Sharon Bowles says it would be a disaster for financial services if the UK voted to leave the EU.

Prime minister David Cameron has pledged to renegotiate the UK’s relationship with the EU and hold an in/out referendum on the new relationship in 2017.

Bowles says thousands of financial services jobs across the country rely on EU membership and would be under threat if the UK left the union.

She says: “It would be a disaster as there would be no more passporting into Europe. The idea that without the passport the UK would be the financial capital of Europe is absolutely not the case. Financial services would be one of the areas that is hugely impacted.”

Bowles also dismissed calls from the FreshStart group of more than 100 Conservative MPs for the UK to remain in the EU but wield a veto over financial services rules, claiming
it is “impossible” to achieve.

Bowles says: “It absolutely will not work, it is total rubbish and there is not a cat in hell’s chance of it happening. The other countries will not yield to it because financial services is part of the single market. We do not allow the Germans to have a veto over car manufacturing rules, so it is a non-starter.”

But Conservative MEP Vicky Ford, who last week kick-started the debate over how to reform EU financial services rules, says Bowles is wrong to say a no vote would be a disaster.

She says: “It is an over-reaction to say a no vote will automatically be a disaster without knowing what the terms of the relationship will be. Does the rest of the EU really want UK firms to never get a passport?

“This is a complex renegotiation and financial services will play a key part so it is wrong to pre-judge it.

“We cannot keep going on as we are at the moment.”

Recommended

20

Ian McKenna: The advisers in denial about technology

If there was an award for the most over used cliché in our industry, over the last year it would undoubtedly be Darwin’s statement that it is those who best adapt to change that survive. This is trotted out with monotonous regularity to support arguments that it will be traditional face to face advice that […]

Multi-manager’s View: Turning the search for yield on its head

Ever since the collapse of Lehman Brothers in 2008 and the resulting global financial crisis, investors have naturally become more risk averse. This is clearly visible when observing flows into risk-targeted funds, where those at the lower end of the volatility scale are proving far more popular than those that have a much larger weighting […]

2

Co-op Bank unveils details of rescue plan

The Co-operative Bank has announced the terms of a rescue deal to plug a £1.5bn capital shortfall on its balance sheet. Under the deal, Co-op Bank bondholders will be “bailed in” by exchanging their bonds for a combination of capital instruments and shares which will give them a “significant minority stake” in the bank. The […]

NAPF appoints Tesco’s Ruston Smith as chairman

The National Association of Pension Funds has appointed Tesco group pensions and insurable risk director Ruston Smith as chairman. Smith will replace Mark Hyde Harrison in the role when his two-year tenure comes to an end at the NAPF annual general meeting on 18 October. Smith has held a non-executive role at the NAPF since […]

Trusts: Easier than you think?

Protection providers often extol the benefits of placing plans in trust. The advantages for clients are widely recognised and numerous – inheritance tax mitigation, avoiding probate delay, controlling claim proceeds, and so the long, familiar list continues. Yet, dismissed as unnecessary form-filling, or simply viewed as irrelevant in the context of a mortgage sale, less […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Like Switzerland. Yeah, they never recovered from leaving the EU. Oh, hang on!?!

    The EU is about as anti-Financial Services as one can get – nobody can forget the French delight in having a commissioner responsible for regulation of the City of London, and their obsession with the Financial Transaction Tax is a case in point as to how they could damage UK financial services…

    …the FCA is no longer able to grant temporary waivers for IFAs in tight PI markets because…of the EU’s IMD. The current FCA handbook is full of inaccessible jargon that never matches what the FCA say they mean because…of the EU’s MiFID. et cetera, et cetera.

    The sooner we withdraw the better. Plus we will save on having to pay MEP salaries and expenses.

  2. European politicians rejected three cost-cutting measures, which would have seen salaries frozen and travel allowances cut, in a move branded as “shameful”.

    The first amendment to be voted down called for MEPs and senior EU staff to fly economy class for journeys of less than four hours around Europe instead of business class – a proposal that would have saved an estimated £20m a year.

    They then rejected an amendment which recommended that “savings in the Parliament should start by its own members”, which called for no further increases in MEP salaries and their various parliamentary allowances in 2012.

    Finally they rejected a third amendment which stated MEPs should not be paid for both being in the Parliament and travelling to or from it. MEPs receive an average flat rate allowance of £168 to cover the cost of travelling from their homes to either Brussels or Strasbourg.

    MEPs are paid an average £83,000 per year, compared to MPs in Britain, who have an annual salary of £65,738.

    “MEPs will next year take home £91,000 in tax free expenses without having to provide any proof of expenditure as part of an increased pay and perks package”
    Telegraph 2010

    Perhaps MS Bowles has a vested interest in such scaremongering

  3. 1. I happen to agree with Sharon Bowles

    2. We already have a financial transaction tax – far in excess of what Europe proposes – it’s called Stamp Duty and SDRT.

    3. If people will insist on making comments about the cost of Europe I do wish they would do the research. HMRC have published the statistics on where your tax £ goes. It may interest you to know that we pay 5 times more for Foreign Aid than we do for the EU. If you want to talk about scandalous waste then perhaps that’s where you should start. I do realise that in the end it is probably the Mercedes factory that is the greatest beneficiary of our charitable munificence. At least the money we pay to Europe does try to benefit the wider community including us – you may not like it, or think it effective – but that’s what it set up to do. Unlike us chucking money away in Foreign Aid for absolutely no return.

  4. Same difference Harry.
    The research above is proof of money wasted.
    Europe has become the insatiable beast that will devour us.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com