Britain's finance industry faces status loss over Brexit

Britain's most powerful financial lobby group warned the UK may lose its status as Europe's top financial centre if it fails to keep its borders open to specialist staff, improve infrastructure and expands links with emerging economies.

In a report published Thursday, TheCityUK said continental Europe might eventually become the preferred destination for banks , insurers and asset managers should they decide to relocate their business there to retain access to the EU single market.

Company migration to Europe may accelerate when property leases expire, they carry out business reviews, or when cost of capital becomes uneconomical.

"Shifts out of the UK may gradually erode the 'cluster effect' of the financial ecosystem, with the threat of a tipping point in the ecosystem being reached," the group said in a 83-page document outlining how the industry can thrive over the next decade.

Securing a favourable deal for financial services in the Brexit negotiations remains a significant challenge for the British government because it is its largest export sector and biggest source of corporate tax.

Britain's finance industry faces a £38bn loss in revenue in a "hard Brexit" that would restrict its access to the EU single market, according to some estimates.