2018.01.2822:37:00UTC+00Brexit Largest Threat to UK Financial Centre - Survey

Uncertainty over Britain's future trading relations with the European Union after Brexit is the most serious threat to London as the world's top financial centre, according to a business survey.

The quarterly survey from business lobby CBI and consultants PwC said optimism in the financial services sector dropped for the third straight quarter in the three months to December, recording two years of flat or decreasing sentiment, though transactions remained steady overall.

Companies want as much clarity as possible on what Britain wants in future trade relations, the survey showed.

The EU is due on Monday to approve criteria for negotiating a transition period that would bridge Brexit in March 2019 and the start of new trading terms.

Andrew Kail, head of financial services at PwC said a transition period is likely, but the financial sector must be prepared to operate outside the bloc

Paris, Frankfurt Dublin and Luxembourg are striving to attract financial services from London that need continued access to EU customers after Brexit.

Financial company profits continued to improve in the final three months of last year, with a similar trend expected in the current quarter, the survey found. Headcount is seen to remain stable.

According to CBI/PwC, 54 percent of the 92 companies they surveyed said they want to make it easier to attract staff to Britain's financial technology or fintech sector.