In the US, the financial sector was a relatively high-skill and high-wage industry at the beginning of the 20th century as well as in the past 30 years. In the interim period, thefinancial sector lost its high human capital position and its wage premium relative to the rest of the private sector.
Although that risk has receded, it hasn’t gone away. And a disorderly Brexit could lead to a lot of uncertainty, volatility and disruption if it were to materialise. Much has been said already on this subject, so I won’t dwell further on it. Other key risks we see on the horizon are abrupt shifts in international trading and tax arrangements.