Red Lines and Red Rags: Why UK-based International Financial Services Firms Are Planning for the Worst, but Still Hoping for the Best

Summary

Immediately following the result of the Brexit referendum, the most common initial reaction of the financial services community in the UK was a combination of shock at the result, and hope for a minimally disruptive outcome for the industry. The optimistic part of this reaction was founded upon the (asserted) irrationality of a hard exit, from the economic perspective of the financial services industry.

In this Executive Insights, L.E.K. London Partner Peter Ward discusses why, nearly one year after Brexit , UK based international financial services firms are planning for the worst but still hoping for the best.  Brexit has wounded the City of London, but negotiations have a long way to run and the smart money will keep its options as open as possible.