"The U.K. and the European Union should conclude a bespoke agreement that delivers mutual market access, transitional arrangements to allow for enough time to implement the new relationship and access to talent," industry lobby group TheCityUK said in a report Thursday.
To avoid the need for preemptive staff moves outside Britain, the banks want an interim agreement soon after May triggers the Article 50 exit clause, which she plans for March. Such a deal would guarantee access to the EU single market beyond the end of the two-year Brexit negotiation period, in case trade barriers are erected at the end of that process if no deal is reached. That would ensure the status quo would hold until a lasting deal on financial services is struck between the U.K. and the EU, according to Bloomberg.
While the prime minister has previously said she wants the best possible deal for banks, last week she indicated that regaining control of immigration was a priority, sending the pound plunging on speculation she’s prepared to depart the EU’s single market.
"Many customers benefit from the industry’s current unfettered access to the EU single market," TheCityUK said. "While respecting sovereignty and immigration control as prerequisites, the U.K.’s exit from the EU should aim to maximize access to EU markets for the products and services offered by providers in the U.K. to EU customers and vice versa."
For analysts’ outlook on an interim U.K.-EU deal, click here.
The lobby group also called on May to "urgently" clarify the status of EU citizens already living and working in the U.K. Future immigration policy should be designed to make it easier for banks to hire employees from all over the world, especially for specialist jobs, the report said.