brexit and its impact on fintechs - newfinance april fintech open mic night
TRANSCRIPT
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Brexit and its impact on FinTechs
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The Referendum and RegulationThe In/Out Referendum and its potential impact on fintech regulation
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Models for Brexit• EEA (European Economic Area) and EFTA
(European Free Trade Association) membership– Norway, Iceland and Liechtenstein
• Bilateral agreements– Switzerland
• Customs union– Turkey, Andorra and San Marino
• Free trade agreements• World Trade Organisation
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Financial Regulation after Brexit• Regulations falling away• Authorisations and passports
–significant impact on provision of services in other EU countries
• EMIR’s effect on London clearing houses
• Euros
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Impact on FintechHM Treasury:• Fintech firms will find it harder to scale
– Loss of passporting rights– Losing access to large customer base
• UK will lose the attraction of being a gateway to Europe • 47% of foreign investors rated UK’s access to
the European market as Very Attractive (source: EY)
• UK will lose influence over EU regulation
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Staying in the EUThe New Settlement – looks largely positive• Economic governance
No discrimination against UK due to being outside Eurozone
Financial stability remains in UK hands: Bank of England, FCA
UK taxpayer not responsible for EU bailouts• Competitiveness
Reduced regulatory burden Extending the single market Free trade agreements with world’s economies
• Sovereignty• Welfare and free movement
– Some concessions that may affect UK economy
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The vote is only the beginning• No immediate change
Brexit -> years of negotiation and planningRemain -> implementing the New Settlement
• Uncertainty will have its own negative consequences– many choosing to hang fire on EU plans– Impact on markets
• The more things change, the more they stay the same?
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Keep your questions coming
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Catriona Lothian
Browne Jacobson LLP