Farnoush Farsiar a former senior director at Emirates NBD is passionate about Brexit.
Her vast knowledge in finance and wealth has given her an unrivalled perspective.
Farnoush has written two pieces for BrexitCentral in the year 2019 and it appears many of her predictions have proven accurate.
Recalling Farnoush Farsiar ‘s prediction about Brexit
In the Farnoush Farsiar view, leaving the European Union would free the British economy and finance market from the burdensome regulations.
It would let the city of London to fully realize its potential.
Financial services industry was unable to comply with MiFID II (Financial Instruments Directive) due to the intrusion of regulators.
Dynamic regulations are essential for keeping your business competitive.
Farsiar declared that London as the capital city of Europe’s biggest financial institutions, has a significant impact on the economy.
If given the freedom to operate given the chance, the British financial services industry might become the best version that is possible.
British financial markets will be impacted by Britain’s exit from the European Union and its conditions.
They will become self-sufficient again, and they won’t be able to blame Brussels anymore.
So lower corporation taxes and undoing EU legislation should be top on the British agenda. This would encourage foreign investors and stabilize the British financial market.
What was UK Market forecast before Brexit
A Deloitte study concluded that the UK attracted more foreign direct investment than any other European country between the years 2015 between 2015 and 2018.
The report also showed that London was more sought-after than New York for inward investments.
It is one of the few truly international and global cities, and is being ensnared by the rules of the European Union that don’t correspond.
Stock trading is one example of this rule.
High-frequency trading, as well as other financial services, are affected by the decrease in efficiency.
It will lead to high frequency trading but it will not be speedy and will take away the beauty of the business.
In contrast, Brexit could allow Britain to offer investors lower options.
London could not be competitive with the rest of the world because of its anti-commerce policies. The industry has repeatedly warned of the massive costs for small-to medium-sized companies.
Andrew Bailey, CEO of Financial Conduct Authority (FCA) has envisioned “the future regulation of financial conduct”.
Bailey said that Bailey explained that the UK can be compared to other nations around the world.
His concept of “the future regulation of financial conduct” was to create an “outcome-focused” and “lower-burden” method of regulation.
Brexit gives the UK the chance to increase its financial reach as well as take away EU restrictions.
These restrictions are hindering the softer regulations that the UK previously had and hinder enterprises and start-ups to grow and be competitive in the global marketplace.
Brexit will allow tech hubs to stay in the blooming cities of its major cities.
Bailey stated Bailey stated that “if we did it the way we want to… Bailey stated that the UK regulatory systems would evolve slightly differently.”
There was serious concern about the UK’s finance market
Competitive advantage is defined as having an advantage in your field through being the best at your job.
They were worried about the destruction of the capital’s financial infrastructure as a result of the rules.
This makes them less attractive to international investors, and companies would flee to Paris, Frankfurt, or Amsterdam.
The greatest fear in the finance market in the UK was that the European Union would limit the EU market’s trading.
The other worry was the potential for rising import and export prices.
So, Britain wants to stay on top of the world’s centre for financial services.
Farnoush Farsiar views the future as more promising
Farnoush Farsiar predicted the Brexit outcome and it was not too far-fetched.
It is clear that there is a light at both the end and the start of the tunnel when you look at British economic debate.
The number of jobs relating to Brexit shifts to Europe has dropped from 7,600 in December 2020 down to just a handful of hundred.
These figures are similar to PwC’s estimates for April 2016. They estimated that as many as 100,000 jobs in the financial sector could be gone in the event that Britain chooses to Leave.
Despite the fact that covid has been causing a lot of pain the UK’s stock markets are back on the rise.
The UK is able to compete with other nations without the EU restrictions and opens the market for more overseas firms.
Large corporations are moving to the British stock market, which is maintaining its standing as a global leader.
The European market is the sole market that has suffered the most they have witnessed in the financial market.
The main reason for this was that the market for seafood and fish was reduced, which is a problem for British Islands.
It is not surprising that, despite lower trade between Europe and higher living costs the cost of living has increased.
Farnoush Farsiar was absolutely right. Brexit is a great move for finance and allowed London to fully realize its potential.