CITY FIRMS EXPECT BREXIT EXTENSION, BUT NO-DEAL FEARS RISE

Just over half of financial services firms anticipate another extension to the Brexit deadline, although the threat of no-deal is being taken increasingly seriously, according to a survey by EY. Just 12% of firms expect the UK to leave with a deal, while 34% anticipate a no-deal scenario is most likely, compared with 54% that expect an extension beyond October 31. In the event of a no-deal, almost half (42%) of the firms say they will transfer UK business to a global centre outside the EU in a no-deal scenario. The biggest concern for a no-deal Brexit is contract continuity (29%), reflecting limited Europe-wide action to mitigate such risks. Market volatility was the second biggest concern (20%), followed by heightened regulatory reporting (19%), immigration considerations and data transfer (each cited by 11% of respondents).