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(Repeats June 27 story with no changes)
* Norway pays into EU coffers, allows free movement ofpeople
* City hopes for similar deal, but faces hurdles
* EU lawmakers say no chance of free access without cost
By Huw Jones and John O'Donnell
LONDON/FRANKFURT, June 27 (Reuters) - The City of London isin talks with government officials as it seeks support for aNorway-style deal giving financial groups continued access toEurope after Britain's exit from the European Union.
The push underscores scepticism that the status quo on tradewith Europe can be held at little or no cost, a pledge made bysome who campaigned for Britain to leave the bloc.
But while there is a growing desire in London's financialcentre for a trade model similar to Norway's - which is not amember of the EU but has close ties to it - those who campaignedfor Britain's exit from the EU would find it hard to accept.
It would mean Britain would have to pay into European Unioncoffers and adopt its laws, without a say, in return for alicense to sell products such as financial services across theEU single market of 27 countries. Norway's deal includes thefree movement of people.
"A lot of City institutions want continued access to thesingle market with passporting rights," Mark Boleat, City ofLondon head of policy, referring to the right to operateunhindered across the single market.
"Clearly, one of the options is the Norway model, butwhether that is acceptable to people who wanted Britain to leaveis another matter," Boleat said, adding trade bodies and othersare in "non-stop meetings" since Friday's referendum result.
"There will be discussion with officials. We are not goingto be waiting for the autumn. There is a huge amount of work todo."
Chris Cummings, chief executive of TheCityUK, which promotesBritain's financial sector, said industry bodies are trying tocome up with a framework.
"None of the existing models work for the UK as the economyis too big. We are looking for a bespoke Brexit solution,"Cummings said.
Britain's decision to leave the European Union has sentshockwaves through financial markets, sending sterling to itslowest level against the dollar for 31 years and puttingEuropean bank shares on course for their biggest two-day fall onrecord.
Political turmoil in London, with deep rifts in the mainpolitical parties, and Brussels, following the resignation lastweek of Britain's EU commissioner in charge of regulation, makesit hard it to know who to lobby, one industry source said.
Prime Minister David Cameron, who will resign by October,said he would leave it to his successor to invoke Article 50,the two-year procedure governing how an EU member state leavesthe bloc.
Over the weekend, several EU officials said the UK needed toformally split right away - possibly at a Tuesday EU meeting.
But officials of the Leave campaign - including formerLondon mayor Boris Johnson - say they want to negotiateBritain's post-Brexit relationship with the EU before formallypulling the trigger to divorce.
Johnson, a likely contender to replace Cameron, wrote inMonday's Daily Telegraph that "there will continue to be freetrade, and access to the single market".
But European officials and observers say it is unlikely theEU would grant Britain access to the single market - key toallowing Britain trade goods and services in the EU - withoutLondon accepting the free movement of EU workers. Many Brexitbackers complained the EU had allowed uncontrolled numbers ofmigrants to arrive from eastern Europe.
Securing the City's open access to the EU market, whichlobbyists say is worth 10 billion pounds ($13.22 billion) ayear, is crucial for the financial hub of London - a centralpillar of the country's economy.
'BREXIT IS NOT A JOKE'
In Brussels, sentiment appears to be hardening.
Roberto Gualtieri, the Italian head of the EU parliament'sinfluential economic and monetary affairs committee, criticisedwhat he called the "false promise" that Britain would keepaccess to the European market but without the costs.
"Brexit is not a joke," he said. "It will haveconsequences."
Bernd Lucke, a German member of the European Parliament whofounded the Alternative for Germany party as a euroscepticgroup, said Britain would regret leaving the EU as the economicfallout became apparent.
"Britain can be in the single market but, like Liechtensteinor Norway, it has to accept the free movement of people," hesaid.
Alexandria Carr, a financial lawyer with Mayer Brown, saidnew trading terms with the EU will not be completed by the endof the two-year timeframe within which Article 50 negotiationsmust be concluded.
Greenland took several years to negotiate its withdrawalfrom the EU's predecessor, the European Economic Community, in1985 and transitional provisions were part of the package.
"The focus (for banks) for the immediate future should be onnegotiating transitional provisions," said Carr, a former UKTreasury official.
Two years could be too long for banks to wait for theoutcome of uncertain negotiations.
"We expect banks to execute restructuring fairly soon basedon 'worst case' analysis of the possible outcomes of the exitnegotiations," said Simon Gleeson, a regulatory partner at lawfirm Clifford Chance.($1 = 0.7567 pounds) (Additional reporting by Francesco Guarascio in Brussels andFrank Siebelt in Frankfurt, Writing By John O'Donnell; editingby Susan Thomas)
