Many financial and banking rules have been set by the EU regulators. The financial institutions will be unsure whether to comply with UK standards or with those set by EU.
Solution or an alternative for passporting and single market would take a high priority in the Brexit negotiations. The outcome of this negotiation will help the financial institutions to plan about where to relocate.
For over 40 years, UK has been regulated by the EU and there are several issues which have not been formally addressed by the UK law.
Short term volatility in the financial sector is very eminent. A prolonged uncertainty regarding these issues will lead to sterling volatility and rise in the cost of financing.
Brexit will restrict the freedom of the banking professionals of UK to other parts of Europe.
In the long term, Brexit will restrict growth in financial service sector, which may impact job creation, time taken for investment decisions and increase the period of time taken for new businesses to expand across Europe.