Notes

Farnoush Farsiar claims Brexit has benefited the UK financial market, despite the gloomy forecasts

Farnoush Farsiar was previously an executive 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 matter.

Farnoush has published two articles on BrexitCentral in the year 2019. It appears today that her predictions proved to be accurate.

Re-visiting Farnoush Farsiar’s prediction about Brexit
Farnoush Farsiar is of the view that leaving Europe will allow the British economy to be free of excessive rules.

It will allow London to fully realize its potential.

Regulatory intrusion made it difficult for the financial services industry to function within MiFID II (Financial Instruments Directive).

Only dynamic regulations can ensure that you're in the game.

Farsiar explained that London is home to the biggest European financial institutions and that this has an impact on the economy.

The financial services industry in Britain could evolve to be the best version when it is freed.

British financial markets are likely to be affected by Britain's departure from the European Union.
They'll be able to self-sufficiency again, and they won’t be able blame Brussels for anything.

Tax reductions for corporations should be a top priority. Additionally, it is important to undo EU legislation. This could encourage foreign investment and stabilize the British market.

What was the UK Market prediction pre-Brexit
According to an Deloitte Report that the UK Attracted the most Foreign Direct Investment Between 2015 and 2018, than any other European country.

Additionally, the report highlighted London overtaking New York as the most desirable city for inward-investment.

It is one of few truly international cities. It is one of the few cities that truly international. European Union rules that do not align with the city's rules are used to hold it down.

The stock market is subject to one of these rules.

High-frequency trading, in addition to other financial services, is hindered by the decline in efficiency.

High frequency trading that lacks speed will result in regular trading, which can reduce the level of excellence in the industry.

Instead, Brexit would give Britain lower options for investors.

London could not compete as an enticing market due to the laws against commerce. Industry experts repeatedly warned about the huge costs that small and medium-sized businesses would have to shoulder.

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

Bailey explained how the UK could be considered to be comparable with other authorities around the globe.

The idea he had of "the future of regulation of financial conduct" was to evolve an "outcome-focused" as well as a "lower burden" approach.

Brexit gives the UK the chance to broaden its financial reach as well as take away EU restrictions.

These restrictions hinder the former regulations that were more relaxed in the UK and make it more difficult for businesses and start-ups to develop on a global scale.

Brexit will make sure that the tech hubs remain well-placed within the major cities.

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

There was serious concern about the UK's financial market
A competitive advantage in economic terms is the ability to gain an advantage over your competitors through being proficient in the field you are specialized in.

The UK was concerned about the collapse of the capital's financial infrastructure because of the rules.

Consequently, they would be less attractive to international investors and firms would flee towards Amsterdam, Frankfurt, or Paris.

The largest fear in the UK was that the European Union would stop trading through the EU market.

Another concern was the possibility of rising import and export prices.

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

Post pandemic and mid Brexit Farnoush Farsiar predicts the future as more optimistic
Farnoush Farsiar was right to accurately predict the Brexit outcome.
It is evident that there is a light at the end of the tunnel and the beginning of the tunnel when you examine British economic policy.

Since December, 7,600 people were moved to Europe as a result of Brexit. This has seen a decrease in the number by approximately 100.

These figures are similar to the April 2016 estimates of PwC. They estimated that up to 100,000 jobs in the financial sector could be lost in the event of Britain choosing to vote Leave.

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

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

The British market for stocks is attracting large companies, which maintains its position as a world leader.

The European Market is the only factor that has led to a decline in the industry of financial services.

The main reason for this was that the market for fish and seafood went down and this is a major issue for British Islands.
It is evident that although trade with Europe was lower but living expenses remained higher.

Farnoush Farsiar had a point. Brexit was a good decision for the finance sector and allowed London's full potential to be unleashed again.


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