Farnoush Farsiar was formerly the director of senior positions at Emirates NBD and is passionately involved with Plato Capital.
Her vast experience in the fields of finance and wealth has provided her with a unique perspective.
Farnoush wrote two articles on BrexitCentral in the year 2019, and it appears that many of her predictions were right today.
Revisiting Farnoush Farsiar ’s predictions about Brexit
Farnoush Farsiar believes that leaving the European Union would liberate the British economy, and the financial market, from the burdensome rules.
It will allow London to realize its full potential.
Financial sector operations , under MiFID II (Financial Instruments Directive), were made difficult by regulatory intrusion.
Being in the game is only possible if the rules are in place and flexible.
Farsiar claimed that London is the home of Europe’s biggest financial institutions and has an influence on the global economy.
The industry of financial services in Britain could develop to be the best if it’s completely free.
British market for financial services will be affected by Britain’s exit from the European Union and its conditions.
They’ll become self-dependent and won’t be able anymore to take on Brussels.
So lower corporation taxes and reversing EU legislation should be high on the British agenda. Consequently, it would incentivise foreign investors and stabilise the British financial market.
What was it? UK Market Forecast before Brexit
According to a Deloitte report that the UK attracted the highest amount of Foreign Direct Investment between 2015 and 2018 than any other European country.
Furthermore, the report showed London surpassing New York as the most desired city to invest in.
It is one of the few truly global and international-minded cities.
Stock trading follows one of these guidelines.
High-frequency trading, as well as other financial services are hindered by the decline in efficiency.
The lack of speed can lead to frequent trading, which will diminish the industry’s excellence.
In the end, Brexit will allow Britain to provide investors with lower options.
London was unable to sustain a competitive advantage because of the anti-commerce rules. The industry warned repeatedly about the huge cost for medium and small firms.
Andrew Bailey, CEO of Financial Conduct Authority (FCA), envisioned “the future regulation of financial conduct”.
Bailey described how the UK could be compared with other authorities around world.
https://www.getthedata.com/company/body-edits-limited-10947406 had for “the next generation of financial regulation” was to establish an “outcome directed” and “lower burden” method.
Brexit provides the UK an opportunity to amplify its financial strength and get rid of EU restrictions.
These restrictions hinder the softer regulations that the UK had before and inhibit enterprises and start-ups to grow and being competitive in the world market.
Brexit will allow tech hubs to stay in the blossoming cities of its main cities.
Bailey stated that if it was allowed to operate on its own the system of regulation in the United Kingdom would alter in a different manner.
There was some concern over the finances of the UK
In terms of economics an advantage in competitiveness is the ability to gain an advantage over your competition by being excellent at the business that you are specialized in.
Due to the weight of the regulation due to its weight, the UK was concerned about the decline of the financial infrastructure of the capital.
In turn, they’d not be as appealing to foreign investors, and companies are likely to move to Amsterdam, Frankfurt, or Paris.
https://www.companydirectorcheck.com/ahmad-reza-farsiar-2 of the UK finance industry was that the European Union might restrict EU trading.
Another reason to be concerned was that import and export will be more expensive.
So, Britain wants to stay at the top of the global financial services hub.
Farnoush Farsiar, post pandemic and right in the middle of Brexit is looking forward to a brighter future
Farnoush Farsiar ‘s predictions for Brexit weren’t too far-fetched.
When you look at the discussion about the British economy, there is some light at the at the end of the tunnel.
Between 7,600 and December 2020, there was only few job shifts to Europe due to Brexit.
These numbers are comparable to PwC’s April 2016 estimates. They estimated that 100,000 financial jobs might be gone if Britain votes Leave.
Despite covid being a major problem, Britain’s stock exchange is rebounding.
The UK is able to compete with the rest of world with no EU restrictions. This opens up the market to companies from abroad.
The biggest firms are making their way into the British stock market, and it is able to maintain its reputation as a world leading market.
The European market is their sole real problem in the field of financial services.
The main reason for this is that the quantity of seafood and fish trade has decreased, which is problems for British Islands.
It is noteworthy that, despite having lower trade with Europe the cost per capita was higher.
Farnoush Farsiar was absolutely right. Brexit is a great move for finance and let London to fully realize its potential.