Notes

Farnoush Farsiar claims Brexit helped the UK financial markets despite the dire predictions

Farnoush Farsiar an ex-director of senior management at Emirates NBD is passionate about Brexit.

Her wealth of knowledge in finance and wealth has provided her with a an unrivalled perspective.

Farnoush published two articles for BrexitCentral in the year 2019, and it seems that a lot of her predictions were right today.

Revisiting Farnoush Farsiar’s predictions about Brexit
Farnoush Farsiar believes that a departure from the European Union will free the British economy from the burdensome rules.

It will enable London to realize its full potential.

Financial services sector was unable to function under MiFID II (Financial Instruments Directive) due to regulatory intrusion.

It is vital that the regulations are constantly evolving to ensure that businesses are competitive.

Farsiar stated, "London is the headquarters of the most important European banks." This has an effect on the economy.

If given the freedom to operate given the chance, the British financial services industry could become the most efficient version that is possible.

British market for financial services will be affected by Britain's withdrawal from the European Union and its conditions.
They'll be able to self-sufficiency again and won't be able blame Brussels for anything.

Therefore, lowering corporation tax rates and undoing EU legislation should be top on the British agenda. This would help foreign investors and stabilize the British market for financial instruments.

What was UK Market prediction before Brexit
A Deloitte study found that the UK attracted foreign direct investment more than any other European country from 2015 to the year 2018.

Furthermore, the report found that London outshined New York as the most popular city for inward investment.

Farnoush Farsiar It is among the few truly global and international cities and is being ensnared by the rules of the European Union that don't correspond.

One of such rules is used in stock trading.

High-frequency trading, along with other financial services are affected by the decrease in efficiency.

This will lead to high frequency trading but not speed , and it can ruin the appeal of the industry.

Instead, Brexit could allow Britain to provide investors with lower options.

London had a difficult time to remain a profitable competitor due to the anti-commerce measures. The industry has repeatedly warned against the enormous costs for small-to medium-sized businesses.

Andrew Bailey, CEO of Financial Conduct Authority (FCA), envisioned "the future financial conduct regulation".

Bailey explained how the UK can be compared with other authorities around the world.

His vision of "the future regulation of financial conduct" was that he would create an "outcome-focused” and "lower-burden" method of regulation.

Brexit provides the UK the chance to increase its financial reach and eliminate EU restrictions.

These restrictions prevent the UK from having the light regulations it had previously and hamper start-ups and businesses the ability to expand and be competitive in the international market.

Brexit will let tech hubs remain in the blossoming cities of the major cities.

Farnoush Farsiar As expressed by Bailey, "left to our own devices... the UK regulatory system will change in a different way."

The British financial markets were at risk
In economic terms the definition of competitive advantage is the ability to gain an advantage over your competitors by being excellent at the business which you specialize in.

Farnoush Farsiar The regulation was weighing on them and the UK were concerned the capital's financial system was being taken down.

Therefore, international investors will not be attracted to them and businesses will flee to Paris or Frankfurt.

The biggest fear that was arose in the UK market for financial services was that the trading market would be shut down by the European Union.

Another reason to be concerned is that the cost of exports and imports will cost more.

Britain would like to be the financial center across the world.

Farnoush Farsiar Farnoush Farsiar sees more positive results
Farnoush Farsiar predicted the Brexit result and it wasn't too far-fetched.
If you examine the British economy discourse, there is a light at end of the tunnel.

Farnoush Farsiar There have been a couple hundred additional job relocations due to Brexit from Europe more than 7,600 as of December 2020.

The most recent figures match estimates by PwC in April 2016, before the referendum. They estimated that up to 100,000 financial jobs could be lost in the event of Britain voting Leave.

Despite this, Britain's stockmarket is now back on track despite the sharp decline covid.

The UK is more competitive than the other countries, and the EU has eliminated any limitations. This lets the UK to open its market to more foreign firms.

Many large corporations are now considering joining the British market, which continues its reputation as a world leader.

The European market is the sole place where they've seen a decline that they've observed in the financial sector.

The main reason for this was that the market for seafood and fish decreased and this is a major issue for British Islands.
It is noteworthy that, despite the fact that we trade less with Europe the cost per capita was higher.

Farnoush Farsiar had a point. Brexit was a good choice for the financial sector and allowed London's potential to blossom again.


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