Finance bosses say UK needs to stay in EU, reform needed

LONDON, Oct 30 (Reuters) - A vast majority of seniorfinancial services executives want Britain to stay in theEuropean Union but said reform is needed to cut the amount ofregulation, according to a survey released on Wednesday.

CityUK, which champions Britain's financial industry, saidan independent survey of 101 UK-based chief executives, chairmenand other senior officials at finance firms showed 84 percentwanted Britain to remain a member of the EU and 94 percentrecognised the value of staying in the single market.

Prime Minister David Cameron has promised to renegotiate theterms of Britain's EU membership and hold an "in/out" referendumif re-elected in 2015, prompting fears it could drop out of theclub it joined in 1973.

There is strong support in London, Europe's dominantfinancial centre, to stay in the EU and the head of the City ofLondon last month said a UK exit could prompt an exodus ofinternational banks and hurt the industry, which makes up abouta tenth of Britain's gross domestic product.

CityUK said 65 percent of those in its survey saidregulatory change was one of the most significant challenges totheir business and more than half viewed the volume of EUregulation as one of their biggest hurdles.

It said eight out of ten said staying in the EU was the bestoption for the competitiveness of the UK as a financial centre.

"Our research has shown that the benefits of EU membershipare numerous for our respondents, not least in the gains we makefrom trade, increased competition, and by providing access tothe world's largest market," said James Nixon, CityUK's chiefeconomist.