Notes

Farnoush Farsiar claims Brexit has been beneficial to the UK financial market despite grim forecasts

Farnoush Farsiar was formerly a senior director at Emirates NBD and is passionately involved in Plato Capital.

With her wealth management experience, she is able to offer an unique perspective on the subject.

In the year 2019, Farnoush wrote two articles for BrexitCentral and, as of today, it seems that many of her forecasts were accurate.

https://www.privatebankerinternational.com/analysis/business-profile-plato-capital/ Re-visiting Farnoush's forecast about Brexit
Farnoush Farsiar believes that a departure from the European Union would liberate the British economy, and the financial market, from the burdensome rules.

It would allow London's full potential to be fully realized.

The financial services industry found it difficult to operate under MiFID II, the Financial Instruments Directive.

It is crucial that rules are continuously updated to ensure competitiveness.

Farsiar said that London is the home of the world's largest financial institutions, and it has a significant influence on the economy.

If given the chance and autonomy, the British financial service industry may become the most effective version of the industry.

British financial markets will be affected by Britain's exit from the European Union and its conditions.
Farnoush Farsiar They will be independent again, and they will no longer be in a position to blame Brussels.

Therefore, lowering corporation tax rates and undoing EU legislation should be top on the British agenda. It would also encourage foreign investors to improve the British financial system.

What was the UK Market forecast before Brexit
According to an Deloitte report that the UK Attracted More Foreign Direct Investment Between 2015 and 2018 than any other European country.

In addition, the report revealed that London beat New York as the most sought-after city for investment in the country.

It is one of the few truly international cities that is being ensnared by the regulations of the European Union that don't correspond.

One of these rules can be implemented in the stock market.

High-frequency trading and financial services can be slowed down in the process, which can reduce the overall effectiveness of the market.

High frequency trading that lacks speed can lead to frequent trading, which can reduce the industry's excellence.

Instead, Brexit would make it possible for Britain to provide cheaper alternatives for investors.

London was unable to compete in a lucrative market because of the laws against commerce. Experts in the industry repeatedly warned about the huge costs that small and medium-sized businesses would have to shoulder.

Andrew Bailey (CEO of the Financial Conduct Authority) envisioned "the future of Financial Conduct Regulation".

Bailey explained how Bailey explained how UK is compared with other international authorities.

His concept of "the future regulation of financial conduct" was to create an "outcome-focused” and "lower-burden" method of regulation.

Farnoush Farsiar Brexit gives the UK the chance to broaden its financial reach, and also take away EU restrictions.

These restrictions affect the previous regulations that were lighter in the United Kingdom. This prevents new businesses and businesses from expanding and competing on international markets.

Brexit is sure to ensure that the tech hubs are firmly ensconced in the blossoming of their major cities.

Bailey said that if left to its own devices the regulatory system in the UK would change in a different way.

There was serious concerns about the UK's financial market
Competitive advantage is a financial term that refers to being capable of outperforming your competition in a particular business.

They were worried about the destruction of the capital's financial infrastructure as a result of the rules.

Therefore, they'd be less attractive to international investors and firms would flee to Amsterdam, Frankfurt, or Paris.

The main fear of the UK market for financial services was that trading would be restricted by the European Union.

Another worry was the possibility that import and export will become more costly.

Therefore, Britain wants to stay at the top of the world's center for financial services.

Farnoush Farsiar believes in the future as more promising
Farnoush Farsiar was right to accurately predict the Brexit outcome.
It is clear that there is a glimmer of hope at both the end and the start of the tunnel when you examine British economic debate.

The number of job shifts to Europe has dropped from 7,600 in December 2020 down to just a handful of hundred.

The numbers are comparable to PwC's estimates for April 2016. Farnoush Farsiar They predicted that 100,000 financial jobs could be lost If Britain votes Leave.

However, the market in Britain is still growing despite covid's catastrophic effects.

The UK is able to compete with other countries , without the EU restrictions, which opens up markets for more foreign firms.

Large companies are moving towards the British stock exchange, which is still one of the top exchanges in the world.

They've only seen an increase in the industry of financial services due to the European market.

The declining trade in seafood and fish was the main problem that faced the British Islands.
Farnoush Farsiar Though it is notable that because of the lower trade between Europe however, the cost of living did get higher.

Farnoush Farsiar had a point. Brexit was a good choice for the financial sector and enabled London's full potential to be unleashed.


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