* Brexit minister says will resolve City of London fears
* London has "insuperable" advantages in finance - Davis
* Davis says wants banks, carmakers free from constraints
By William James
BIRMINGHAM, England, Oct 4 Britain promised to
negotiate an exit deal with the European Union that resolves
deep concern in London's financial sector that Brexit will
disrupt its business model, David Davis, the minister in charge
of the talks, said on Tuesday.
The future of Britain's global financial centre will be a
major negotiating point in talks with the EU on exiting the
bloc, which Prime Minister Theresa May announced on Sunday would
start formally by the end of March.
Banks are keen to retain the "passporting" rights that allow
them to sell financial services across the EU from London, and
have urged the government to reach a transitional deal to avoid
disruption to financial markets.
"We will set about making sure that the things that people
are worrying about like passporting are resolved, there's no
question there," Davis said, speaking at an event organised by
grassroots website ConservativeHome on the sidelines of the
ruling Conservative Party's annual conference.
"We have to worry about it, but we don't have to fear it,
because we can control it," he said on the future of the sector
and the prospect of business being lost to EU competitors.
He said London had "insuperable" advantages such as being
English-speaking, and that the City had "huge critical mass" in
the global financial system.
Nearly 2.2 million people work in financial services in
Britain and the sector contributed 190 billion pounds ($240
billion), or 11.8 percent of output, to the British economy in
On Monday, the UK head of U.S. bank Citi said that some jobs
in London's financial sector would move to countries inside the
European Union after Britain leaves the bloc, regardless of what
deal is struck on access to the EU single market.
Davis also said a good deal for Britain to leave the
European Union should help foreign car manufacturers, saying
companies such as Japan's Nissan - which has voiced
fears over higher tariffs - should not worry.
"We want the car manufacturing industry to be doing better,
we want the finance sector to be doing better, with no
constraints on them," he said when asked what the government
could do to reassure investors.
Nissan Chief Executive Carlos Ghosn said last week he could
scrap new investment in Britain's largest car plant unless the
country pledged to pay compensation for any tax barriers being
put up after Brexit.
(Additional reporting by Elizabeth Piper; Editing by Alison