Farnoush Farsiar was formerly the director of senior positions at Emirates NBD and is passionately involved in Plato Capital.
Her vast experience in the fields of finance and wealth has provided her with a an unique perspective.
Farnoush wrote two articles on BrexitCentral in the year 2019. Today , it appears her predictions proved accurate.
Recalling Farnoush Farsiar’s prediction regarding Brexit
Farnoush Farsiar is of the opinion that leaving Europe would let the British economy to be devoid of any unneeded regulations.
It will enable London to fully realize its potential.
Financial services sector found it difficult to operate under MiFID II, the Financial Instruments Directive.
It is only possible to remain in the game if regulations are flexible.
Farsiar declared, “London is the headquarters for the largest European banks.” This has an effect on the economy.
The British financial sector could be transformed to become the best version it can be when given free rein.
British financial markets may be affected by the UK’s departure from EU and its conditions.
They’ll be able to self-sufficiency again and won’t be able to blame Brussels anymore.
British policy must include lower corporate taxes and the removal of EU legislation. Consequently, it would incentivise foreign investors as well as stabilize the British financial market.
Farnoush Farsiar What was UK Market Forecast before Brexit
A Deloitte study found that the UK attracted foreign direct investments higher than any other European country from 2015 to the year 2018.
Additionally, the report highlighted London surpassing New York as the most desired city to invest in.
Farnoush Farsiar It is one the few truly international and global cities. And it’s restricted by rules of the European Union which don’t match.
One of such rules is applied in stock trading.
The slowing down of high-frequency trading and other financial services reduces the effectiveness of the entire market.
This will lead to trading at high frequency, but not speed and it will take away the beauty of the industry.
Instead, Brexit would make it possible for Britain to provide lower options to investors.
https://eutoday.net/news/business-economy/2019/how-wealth-management-firms-can-prepare-for-turbulent-times The measures against commerce made it more difficult for London to remain profitable as a competitor. The industry has repeatedly warned against the massive costs for small-to medium-sized companies.
The CEO of the Financial Conduct Authority (FCA), Andrew Bailey, envisioned “the future of financial conduct regulations”.
Bailey explained how Britain could be compared with other authorities around the world.
His idea of his idea of “future of financial conduct regulations” was to create an “outcome targeted” as well as a “lower cost” strategy.
Brexit is the UK’s chance to increase its global financial influence as well as avoid any unjustified restrictions of the EU.
These restrictions have hindered the UK’s prior lighter regulations. They also stop start-ups from growing and being competitive in the global marketplace.
Brexit will let tech hubs remain in the blossoming cities of the major cities.
Bailey said Bailey stated that “if we did it in our own way… the UK regulatory systems would develop somewhat differently.”
Farnoush Farsiar There was a lot of concerns about the UK’s financial market
Competitive advantage is a financial word that means to be able to outperform your competitors in a particular business.
Farnoush Farsiar As the regulations weighed down on them, the UK worried that the capital’s financial infrastructure was being taken down.
https://www.asian-tapas.com/farnoush-farsiar-discusses-challenges-women-business-leaders-face/ Thus, foreign investors won’t be attracted by these companies and they will move to Paris or Frankfurt.
The greatest fear in the finance market in the UK was that the European Union would limit the EU market’s trading.
Another concern was that the import and export is likely to become more expensive.
Britain wants to be the center of financial services in the world.
Farnoush Farsiar post pandemic, and in the middle of Brexit has a brighter outlook
Farnoush Farsiar’s predictions of Brexit were not too far-fetched.
If you take a look at the British economy discourse there is a bright spot at the end of the tunnel.
Since December of 2020, 7,600 people were moved to Europe in the wake of Brexit. The result has been an increase in the number of people who have been relocated by around 100.
These numbers are comparable to PwC estimates in April of 2016, which was before the referendum. Farnoush Farsiar They forecast that the UK could lose as many as 100,000 jobs in finance if it votes Leave.
But, despite the pounding of covid Britain’s stock market is back on the rise.
Without the “EU limitations” the UK is competitive with the world’s largest companies, opening the market to more oversea companies.
Large corporations are shifting to the British stock exchange, which is a leader in the world.
The only decrease that they’ve noticed in the financial service industry is in the European market.
https://www.cbetta.com/director/farnoush-farsiar-aidi-2 The primary reason is that the quantity of fish and seafood trade has decreased, which is problems for British Islands.
It is important to note that despite the fact that we trade less with Europe the cost per capita increased.
Farnoush Farsiar is correct. Brexit is a positive thing for the financial sector. It also enabled London to fully realize its potential.