City firms react with “cautious optimism” to Brexit deal

London firms have reacted to the proposed Brexit deal with “cautious optimism” despite lawyers advising business to prepare for the worst, as reported in the Law Gazette.

Charles Brasted, partner at Hogan Lovells and part of the firm’s Brexit taskforce group, commented that businesses can afford some “cautious optimism” as the agreed 21-month transition period gives them time to prepare and try to avoid a “cliff edge” scenario. He also, however, warned of the prospect of the deal falling through and a possible general election.

Simon Gleeson, regulatory partner at Clifford Chance, said that people should stop thinking about breaking up the European markets of today and instead ask how to “build the European markets of tomorrow”. Predicting that the UK will remain the “primary financial centre” in Europe for at least the medium term, he said that would pose a significant problem for the EU’s financial authorities.

“If over the next year or so we can create a co-operative framework within which the UK and EU authorities can co-operate seamlessly, that will be a benefit for market users, investors, savers and borrowers,” Gleeson said. “The financial crisis showed how fragmented supervisory and regulatory systems can harm whole economies, so we have to hope that those memories are fresh enough to bring both sides to a good outcome.”