Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites.
Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. For avoidance of any doubts and to make it easier, you may consider any links to external websites as sponsored links. Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

HOW CAN FINANCIAL SERVICES THRIVE POST BREXIT?

By Christopher Burke, CEO of Brickendon

“For many firms in the financial services sector, Brexit offers an opportunity to turn your business into a thriving organisation, capable of improving its market position in unpredictable environments.”

“In 2014, exports of financial services to the EU generated an £18.5bn trade surplus, according to a study by industry body TheCityUK, and is therefore a flow of business that needs to be preserved. One of the main concerns that could limit this are passporting rights.”

“To overcome this, UK firms may need to consider setting up subsidiaries in EU locations in order to continue carrying out business with EU-based institutions. In the long run, it may also be beneficial to increase bilateral trade agreements with other emerging financial centres such as Hong Kong or Singapore.”

“The decision to exit the EU will likely reduce banking stability as a result of divergent responses to regulation from both the EU and UK regulators. It will also alter the competitive landscape, with increased competition from other financial centres and change the makeup of the workforce, with a slowdown in EU talent coming into the City.”

“The key things to consider include market access, potential unwinding, regulatory implications, location of clients and competition for talent. For example, locating the right parts of your business in the right place at the right time can reduce operating costs by as much as 60 per cent.”

“It is also important to ensure you understand your degree of exposure to different geographies and regulations, including that of your counterparties and suppliers. A lot of the changes will likely relate to cross-border transactions and the restrictions these could place on your business, particularly in relation to data, trades and vendors, and service providers.”

“Global organisations will also have to consider existing contractual obligations linked to borders, such as using vendors and providers that are owned by EU companies, or operating near-shore businesses in EU locations like Poland. The key at this stage is to ensure you know all the details of the agreements and your contractual obligations so you are ready to act when the needs arises.”

“It may also be worth monitoring your exposure to exchange rate risk, as well as ensuring you have the right communication channels and distribution networks in place to share your vision and plans internally and externally.”