Our new service "Brexit
and the City - the Impact" builds on the popularity of my series
of videos about the impact of Brexit on "the City" - shorthand for
the financial services industry throughout the UK.
Details are here
Financial Services Club/ZYen video with Alderman Mainelli and
Graham Bishop: Brexit: Ending the City's Dominance of European Finance?
How might this play out by say 2024? Could the divergence cause
the end of the City’s dominance of European finance? It might well do.
The future of the financial services industry – centred in the City
of London – matters enormously to the health of the United Kingdom’s
economy. The Trade and Co-operation Agreement (TCA) has few provisions
on financial services and the UK now appears set to drive a wedge
between EU and British rules so it can “benefit” from its new-found
Brexit freedom. In reality, this “wedge” is unlikely to benefit the
economic prospects of the City or the United Kingdom.
There can be
no doubt that the EU will use the “autonomy of its decision-making
process” – as stressed in the TCA. If the UK wishes to row alongside the
EU super-tanker and “take” its rules, then the UK will remain
“equivalent”. But current UK policy intentions suggest there will be an
ever-widening gulf by the end of this Commission’s term in 2024 – as the
logical outcome of UK policy. The internationally mobile financial
services industry will undoubtedly take account of this probability in
planning the location of future business opportunities.
Graham Bishop's analysis targets the interaction of the driving forces of politics and economics as they force the required changes in financial regulation – at the macro level - rather than covering the micro aspects of detailed implementation. These are precisely the topics where a well-informed financial professional should remain competent: it can form part of their Continuing Professional Development (CPD).
Banking union and capital markets union are already underway, but obstacles remain and consumer protection is a necessary conditon for success.
The next big project – enhancing the international role of the euro – is only under discussion but the EU is seeking to neutralise any “weaponising” of the dollar
Environmental, Social and Governance (ESG) policies are a key priority for the new Commission – with a European Green Deal planned within its first 100 days. But “sustainable finance” goes beyond “green” and includes social considerations as well as the governance that brings it to the forefront of financial decision-making.
The Fin Tech Action Plan will help the financial industry make use of the rapid advances in technology such as blockchain and other IT applications and strengthen cyber resilience. The impact on payment systems will be at the cutting edge.
Access our insights
As a `Friend of GrahamBishop.com' you can easily `scan the horizon’ for politics and economics driving regulatory reform of European financial markets by joining the 'Brussels' Finance Watchers community
His proposal for a Temporary Eurobill Fund is one of the range of options in this study. His proposal offers a modest, technical but concrete step that can be expanded progressively into a financial, economic and political structure if circumstances develop propitiously. This author has developed the TEF plan over several years and has comprehensively updated it in the form of “30 FAQs”. Click to download.