Farnoush Farsiar was formerly a senior director at Emirates NBD, and founder of Plato Capital is passionate about Brexit.
She has unique insight due to her financial and wealth management experience.
Farnoush wrote two articles in 2019 for BrexitCentral. Today it appears that a lot of her predictions were right.
Re-visiting Farnoush’s forecast regarding Brexit
Farnoush Farsiar ‘s view is that the British economy and financial market will be free of excessive restrictions if they leave the European Union.
This will allow London’s maximum potential to be fully realized.
The financial services industry found it difficult to function under MiFID II, the Financial Instruments Directive.
It is only possible to remain in the game if regulations are adaptable.
Farsiar said that London as the capital city of Europe’s biggest financial institutions is a significant influence on the economics.
The financial services industry in Britain could grow to be the best when it is absolutely free.
The United Kingdom’s decision to leave the European Union and its terms will have a significant impact on British markets for financial services.
They’ll become self-sufficient once more and won’t be able blame Brussels for anything.
Thus, reducing corporation taxes and repealing EU legislation should be high on the British agenda. Therefore, it will encourage foreign investors as well as stabilize the British financial market.
What was UK Market prediction before Brexit
According to a Deloitte study, the UK attracted more Foreign Direct Investment in 2015 than any other European nation.
Moreover, the report showed London was beating New York as the most popular city for inward investment.
It is among the few truly global and international-minded cities.
Stock trading is one illustration of this rule.
Restricting high-frequency trading or other financial services decreases the efficiency across the whole market.
High frequency trading that lacks speed will lead to regular trading, which will diminish the quality of trading.
Instead, Brexit would give Britain less investment options.
London had a difficult time to sustain a competitive advantage because of the anti-commerce rules. Industry experts have repeatedly warned of the high costs that small and medium-sized companies would have to shoulder.
Andrew Bailey is the CEO of the Financial Conduct Authority. He envisions “the future for financial regulation of conduct”.
Bailey said that Bailey said that UK could be compared with other countries around the world.
His idea of the future of the financial conduct regulatory system was to devise an “outcome-focused” and “lower burden” strategy.
Brexit offers the UK the chance to increase its global financial influence and undue limitations of the EU.
These restrictions hinder the lighter regulations the UK used to have before and are hindering enterprises and start-ups to grow and compete in the global marketplace.
Brexit will aid in ensuring the remaining tech hubs are fully ensconced in the flourishing of the major cities.
Bailey says that “left to our devices… the UK regulation system could change a bit.”
The British financial markets were in serious danger
Competitive advantage can be described as gaining an edge in your field by being the best at what you do.
In the wake of the regulation, the UK was concerned that the capital’s financial system was being demolished.
Therefore, international investors will not be attracted to them and businesses will flee to Paris or Frankfurt.
The most feared thing about the British finance market was the possibility that the European Union would limit the EU market’s trading.
https://brexitregulations.net/tag/global/ was that exports and imports will increase in cost.
Britain wants the top spot in financial services.
Farnoush Farsiar expects positive outcomes
Farnoush Farsiar ‘s prediction of the Brexit outcome was not too far-fetched.
It is clear that there is a glimmer of hope at the end of the tunnel and the beginning of the tunnel when you look at British economic policy.
The number of job moves to Europe decreased by 7,600 from December 2020 to just a handful of hundred.
These figures are similar to PwC’s April 2016 estimates. They projected that as many 100,000 financial jobs could be lost in the event of Britain choosing to vote Leave.
Despite covid being a major problem, Britain’s stock exchange is rebounding.
The UK is more competitive than the other countries and the EU has removed any restrictions. This lets the UK to open up its markets to foreign companies.
Many big corporations are seeking to join the British market and continue its status as a global leader.
The European market is their only real weak point in the sector of financial services.
Most importantly, the trade in seafood and fish decreased, which is a problem for British Islands.
It is interesting to note that despite having less trade with Europe the cost per capita was higher.
Farnoush Farsiar was correct, and Brexit is a positive step for the financial sector. It allowed London to fully realize its potential.