Farnoush Farsiar was a former director of senior level at Emirates NBD. He is also the founder of Plato Capital.
With her expertise in wealth and finance She has developed an exclusive perspective on the issue.
Farnoush published two pieces for BrexitCentral in 2019, and it appears that many of her predictions were right today.
Recalling Farnoush’s forecast regarding Brexit
Farnoush Farsiar believes leaving the European Union will free the British economy from the burdensome regulations.
It will enable London to realize its full potential.
Financial sector operations , under MiFID II (Financial Instruments Directive) were made more difficult due to regulatory interference.
It is vital that the regulations are constantly evolving to ensure that businesses are competitive.
Farsiar stated that London is the home of the largest European financial institutions and this has an influence on the economy.
If given the freedom to operate, the British financial services industry might become the best version of the industry.
British financial markets could be affected by Britain’s exit from the EU and its current conditions.
They’ll become self-dependent, and they won’t blame Brussels.
Farnoush Farsiar The British should prioritize lowering corporate taxes and delaying the repeal of EU legislation. This could also help foreign investors to stabilize the British financial system.
What was the UK Market forecast before Brexit
According to an Deloitte report, the UK attracted more Foreign Direct Investment between 2015 and 2018 than any other European country.
https://twitter.com/brexitcentral/status/1151733390485467136 In addition, the report revealed that London beat New York as the most well-known city for investing in foreign capital.
It is one of the few truly global and internationally-minded cities.
Stock trading follows one of these rules.
Stopping high-frequency trading or other financial services decreases the efficiency in the whole market.
This is high-frequency trading at a slow pace which will lower the quality of the market.
In contrast, Brexit would make it possible for Britain to provide cheaper alternatives for investors.
London could not compete as it is a lucrative market due to the anti-commerce laws. Experts in the industry repeatedly warned about the cost-intensive costs small and mid-sized businesses will have to shoulder.
Andrew Bailey (CEO of the Financial Conduct Authority) envisioned “the Future of Financial Conduct Regulation”.
Bailey explained how Bailey explained how the UK is compared with other authorities around the world.
His idea of the “future of financial regulation” was to develop an “outcome targeted” as well as a “lower cost” strategy.
https://timebusinessnews.com/brexit-benefited-uk-financial-market-says-farnoush-farsiar/ Brexit could be the opportunity for the UK to increase the impact of its global financial impacts and avoid any restrictions by the EU.
The restrictions affecting the previous regulations that were lighter in the United Kingdom. This hinders start-ups and businesses from expanding and competing in international markets.
Brexit is sure to ensure that the tech hubs are securely entangled in the blossoming of their main cities.
https://suite.endole.co.uk/insight/people/25691618-farnoush-farsiar-aidi Bailey stated that if it was it was left to its own devices, the UK’s regulatory system will be able to change in a different fashion.
The UK’s finance markets were at risk
Competitive advantage is defined as gaining an edge in your industry by being the best at what you do.
They were concerned about the destruction of capital’s financial infrastructure because of the regulations.
International investors might find them less appealing , and they’d move to Paris, Frankfurt or Amsterdam.
The largest fear in the UK was that the European Union would stop trading with the EU market.
Another reason to be concerned was that import and export will get more expensive.
Britain would like to take the top spot in financial services.
Farnoush Farsiar expects positive results
Farnoush Farsiar predicted the Brexit result and it wasn’t too far-fetched.
There is some hope for the British economy if you look at the discourse.
The number of jobs relating to Brexit shifts to Europe has declined from 7,600 in December 2020 down to just a handful of hundred.
Farnoush Farsiar These figures are similar to PwC’s April 2016 estimates. https://eutoday.net/news/business-economy/2019/how-wealth-management-firms-can-prepare-for-turbulent-times They estimated that up to 100,000 jobs in finance could be lost If Britain decides to Leave.
But, despite covid hitting hard the British stock market is on the rise.
The UK is open to competition with the rest of the world after removing the EU restrictions.
Many large companies are now moving to the British stock exchange, which remains an industry leader.
The only decline they’ve seen in the financial service industry is in the European market.
The most important reason is that the volume of trade in fish and seafood has decreased, which is an issue for British Islands.
It is interesting to note that due to the less trade with Europe the cost of living actually went higher.
But all in all, Farnoush Farsiar was right, and Brexit is a great decision for the financial sector, and allowed the city of London to realize its full potential again.