![]() There was no market disruption at the end of 2020 and certainly in wholesale markets the so-called repapering of clients to domestically licenced firms went well. In the event, the Brexit "divorce" process worked and worked well in financial services. Market adjustment and a smooth transition As some have commented, this was a deliberate and costly act of fragmentation.ĮY's recent survey of investor confidence in financial services had a remarkable 87% of firms expecting to expand in the UK and a record high of 90% of investors believing the UK will be equally or more attractive a destination in three years. In addition, UK based market infrastructure traded and cleared many EU securities and many EU firms had direct access to the international securities and reinsurance markets in London. But there were no arrangements for continued cross border provision of services in the new EU-UK trade deal, the TCA, and once this became clear, firms committed massive effort and resources into splitting their businesses into UK and EU regulated entities. ![]() The immediate impact of Brexit was of course difficult. Many firms - insurers, banks, fund managers - had made extensive use of the single market and based a significant proportion of their EU client facing activity in the UK, including activity in EU currencies like the Euro. I am often asked how the City is faring one year on after we left the single market. The simple answer is "very well, thank you" but that British understatement covers a range of different impacts, made even more complicated by Covid. But, the UK remains a major international financial services centre and the City is working hard to retain its competitiveness. A lot of Euro denominated activity has moved "onshore". ![]() Brexit has had a significant impact on the financial services sector and on our clients. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |