* Banks call for visa waiver for internal staff moves
* Banks seek to avoid immigration caps after Brexit
* Report warns sector will suffer without access to talent
(Adds comment from Home Office)By Andrew MacAskill and Huw JonesLONDON, May 11 (Reuters) - Global banks in Britain arecalling for a special work visa waiver after Brexit to preservethe City of London's standing as a top global financial centre,two industry sources said, a move that would be more generousthan the current arrangements.Since Britain voted to leave the European Union two yearsago, London's financial services industry has been trying toprepare for losing access to its biggest trading bloc, itstoughest challenge since the 2007-2009 financial crisis.London vies with New York as the world's financial capitaland potentially has lot to lose from the end of unfetteredaccess to the EU's post-Brexit market of 440 million people.Business leaders have repeatedly expressed concern that acrackdown on immigration from the EU could hamper their abilityto find staff with the right skills.As a result, the finance industry is demanding a new systemwhere international staff posted to Britain for less than sixmonths will be able to come and go freely without having toapply for a work visa before they travel, the sources said.The proposal is a core recommendation in a draft report byTheCityUK, which promotes Britain's financial services sector,and consultants EY, the sources said.The report reminds the government that the finance sectormust continue to attract top global talent because it thebiggest source of corporate tax revenue accounting for 14percent of all tax revenue raised in Britain.The report will be shared with the Home Office and Treasuryand is the most detailed request yet by Britain's financeindustry to the government about how it wants immigration policyto look after Brexit.
THE RISE OF THE CITYFor centuries, immigrants from around the world have helpedto establish London as a major centre for international finance.Nathan Rothschild, who came to London from Germany, helpedto expand the business of banking in the 19th Century byfinancing the governments of Europe and Latin America throughbonds underwritten in the City.
A century later, London's reputation as a global financecentre was enhanced by another immigrant, Siegmund Warburg, whohad fled Nazi Germany in the 1930s. He helped to create theEurobond market - now worth trillions of dollars.To try to preserve the flow of talent the report isrecommending that Britain introduces a "flexible short-termimmigration category" for employees of international banks,insurers, asset managers and related professions like lawyersand accountants, the sources said.The government is expected to outline its future immigrationrules later this year and bankers' demand for special exemptions potentially puts the industry still scorned by Britons sincethe financial crisis on a collision course with large swaths ofthe public. Curbing immigration was one for the main drivers for Britonsvoting to leave the EU in the 2016 referendum, following a largeinflux of EU citizens, especially from poorer countries ineastern Europe. The City's report on immigration is due to be formallyunveiled in ten days time at an event where the immigrationminister Caroline Nokes is due to give a keynote speech.
IMPORTING TALENTPotentially one of the report's most controversial demandsis for the "enhanced" immigration system to treat European andnon-European staff in the same way after the Brexit transitiondeal ends in 2020.The finance industry is concerned that after Brexit, EUnationals who want to work in Britain will face the sameinflexible "caps" or numerical curbs that non-EU nationalsalready face, the sources said.Extending these caps to EU citizens would only worsenexisting skills shortages, the sources said.It urges Britain's government to set out a broad, posttransition immigration policy by spring 2019 so that companieshave enough time to adjust.
A Home Office spokesman said the government was working toput in place an immigration system which works in the interestsof the whole of Britain."This system will be based on evidence," the spokesman said."We continue to engage with a range of stakeholders, includingbusinesses in the financial services industry."EY did not respond to requests for comment. TheCityUKdeclined to comment.
(Reporting By Andrew MacAskill and Huw Jones; editing by GuyFaulconbridge and Jane Merriman)