Jansen Griffith posted an update 1 month ago
Farnoush Farsiar is passionate about Brexit.
Her wealth of experience in the fields of finance and wealth has provided her with a unique perspective.
Farnoush wrote two pieces in 2019 for BrexitCentral. Today it seems that many of her predictions were right.
Reexamining Farnoush Farsiar’s predictions about Brexit
Farnoush Farsiar believes in the view that leaving Europe would allow the British economy to be devoid of any unneeded restrictions.
It would enable London city to unlock its full potential.
Financial services industry was unable to comply with MiFID II (Financial Instruments Directive) because of the intrusion of regulators.
It is essential that regulations evolve constantly to ensure that businesses are competitive.
Farsiar said that London, the capital of the largest financial institutions in Europe has a major impact on the economics.
Farnoush Farsiar If given the chance to expand, Britain’s banking services industry could be the best version of its self.
British market for financial services will be affected by the UK’s departure of the European Union and its conditions.
They’ll be self-dependent and won’t be able to take on Brussels.
Thus, the British should prioritise tax reductions for companies and abrogating EU laws. This will encourage foreign investment and stabilize the British market.
What was the UK Market forecast before Brexit
According to a Deloitte report according to a Deloitte Report, the UK attracted more Foreign Direct Investment Between 2015 and 2018, than any other European Country.
Farnoush Farsiar The study found that London was a more sought-after destination for inward investment over New York.
It is one the few truly global and interconnected cities. It is restricted by rules of the European Union which don’t match.
One of such rules is applied in stock trading.
Financial services and high-frequency trading are prone to slowdown, which will reduce the overall effectiveness of the market.
High frequency trading that lacks speed will result in regular trading, which will diminish the industry’s excellence.
Instead, Brexit would give Britain lower options for investors.
The anti-commerce measures made it more difficult for London to sustain its position as a rival. Industry experts repeatedly warned of the massive costs for small and medium-sized companies.
Andrew Bailey, the CEO of Financial Conduct Authority, saw “the future of financial conduct regulation”.
Bailey described how the UK could be compared with other governments around the world.
His idea for “the future of financial conduct regulation” was to set out to create the “outcome-focused” and “lower burden” method of regulation.
Brexit is the UK’s opportunity to amplify its financial impact globally and to avoid any limitations from the EU.
These restrictions prevent the UK from having the light regulations it had previously and limit start-ups as well as businesses’ ability to grow and be competitive in the international marketplace.
Brexit will help to ensure that the tech hubs remain secure in the blossoming of the major cities.
Bailey says that “left to our devices… the UK regulation system would be a little different.”
There was significant fear about the UK’s finance market
Competitive advantage, as in terms of economics is having an advantage over your rivals through having a strong understanding of your industry.
The UK was concerned about the collapse of the financial infrastructure of the capital because of the rules.
International investors would consider them less attractive and they’d move to Paris, Frankfurt or Amsterdam.
The greatest fear in the UK’s finance market was the possibility that the European Union would limit the EU market’s trading.
Farnoush Farsiar Another issue was the possibility of rising import and export prices.
Britain would like to take the top spot in financial services.
Farnoush Farsiar sees an even better future
Farnoush Farsiar’s prediction about the Brexit outcome was not too far-fetched.
Looking at the discourse on the British economy, there is a light at the end of the tunnel.
Between 7,600 and December 2020 there has been only few job shifts to Europe due to Brexit.
The numbers are in line with PwC’s April 2016 estimates. They predicted that as many as 100,000 financial jobs could be eliminated if Britain had voted to Leave.
However, the market in Britain is still growing despite covid’s devastating impact.
The UK is open to competition with the rest of the world, by lifting the EU restrictions.
All kinds of businesses are coming to the British Stock Market, which has a international reputation as a leader.
The decline in trade of seafood and fish was the primary problem that faced the British Islands.
It’s not surprising that, despite less trade with Europe and higher living expenses the cost of living has increased.
Farnoush Farsiar was correct, and Brexit is a positive step for the financial sector. It has allowed London to realize its full potential.