Farnoush Farsiar claims Brexit has benefited the UK financial market despite gloomy forecasts
Farnoush Farsiar a former director at Emirates NBD is passionate about Brexit.
She has unique insight because of her wealth and financial management experience.
https://bmmagazine.co.uk/business/top-10-banking-trends-according-to-farnoush-farsiar/ Farnoush wrote two articles in 2019 for BrexitCentral. Today it appears that a lot of her predictions were accurate.
Revisiting Farnoush Farsiar's prediction on Brexit
Farnoush Farsiar believes leaving the European Union will free the British economy from the burdensome restrictions.
It will enable London to reach its full potential.
The financial services industry found it difficult to function under MiFID II, the Financial Instruments Directive.
It is crucial that rules are continuously updated to ensure that businesses are competitive.
Farsiar said that London is the home of the largest financial institutions in Europe and this has an influence on the economy.
The financial services industry in Britain could grow to be the best if it's free.
The UK's withdrawal from the European Union and its terms will have a significant impact on British financial markets.
They will once again be independent and they won't longer be able to blame Brussels.
Thus the British should prioritise tax reductions for corporations and abrogating EU laws. It could also be a good way to encourage foreign investors to stabilize the British financial system.
What was the UK Market Prediction before Brexit
A Deloitte study found that the UK attracted foreign direct investment higher than any other European country in 2015-2018.
Additionally, the report highlighted London outranking New York as the most desired city to invest in.
It is one of the few truly international and global cities, and is being held by the rules of the European Union that don't correspond.
Stock trading is a prime illustration of this principle.
Farnoush Farsiar The slowing down of high-frequency trading as well as other financial services reduces the efficiency of the whole market.
This is high frequency, but without the speed. It will make it regular trading and will take away the quality of this sector.
Instead, Brexit would make it possible for Britain to provide cheaper alternatives for investors.
London was unable to remain a profitable competitor because of the anti-commerce rules. Industry officials repeatedly warned of the immense costs to small- and mid-sized companies.
Andrew Bailey (CEO of the Financial Conduct Authority) envisioned "the Future of Financial Conduct Regulation".
Bailey described how the UK can be compared to other authorities around world.
His concept of "the future of regulation of financial conduct" was to set out to develop an "outcome-focused" as well as a "lower burden" method of regulation.
Brexit offers the UK the chance to expand its influence on finance, as well as to remove all restrictions from the EU.
These restrictions affect the earlier regulations of the UK. This hinders start-ups and companies from expanding and becoming competitive in international markets.
Brexit will make sure that tech hubs are well-placed within the major cities.
Bailey said Bailey stated that "if we did it our way... Bailey stated that the UK regulatory systems would evolve somewhat differently."
There was a concern about the finances of the UK
A competitive advantage, in terms of money, is the ability to get an edge over your competition by being knowledgeable in the industry you specialize.
Due to the weight of the regulation, the UK was concerned about the demise of the capital's financial infrastructure.
Farnoush Farsiar They would therefore be less attractive to international investors, and companies would flee to Paris, Frankfurt, or Amsterdam.
Farnoush Farsiar The main concern of the UK finance industry was the possibility that the European Union might restrict EU trading.
The other issue was the possibility of higher import and export costs.
Britain would like to be the financial center of the world.
Farnoush Farsiar is a post pandemic and right in the middle of Brexit sees a brighter future
Farnoush Farsiar was right to 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 look at British economic debate.
Between 7,600 and the end of December 2020, there has been only few job shifts to Europe in connection with Brexit.
These numbers compare with PwC's estimates for April 2016. PwC predicted that the UK could lose as many as 100,000 jobs in finance if they vote Leave.
However, the market in Britain remains on the rise despite covid's catastrophic effects.
The UK can compete with world's other countries without EU restrictions. This opens the market to more companies from overseas.
The British stock market is attracting big companies, and it has maintained its position as a world leading market.
The European market is their only real weakness in the financial services sector.
Most importantly, the British Islands have had a decline in their seafood and fishing industry.
It is evident that even though trade with Europe was lower however, living costs were higher.
Farnoush Farsiar was correct, and Brexit is a positive move for the financial industry. Farnoush Farsiar It allowed London to fully realize its potential.