Capital used to maintain status quo post-Brexit, say ISLA panellists
20 June 2018 Lisbon
Image: Shutterstock
Capital that could be used to innovate in financial services is going towards “maintaining the status quo”, according to panellists at the International Securities Lending Association’s (ISLA) 27th Annual Securities Finance and Collateral Management Conference in Lisbon.
During a session on Brexit, panellists discussed the implications of Brexit and how money that is being spent on IT to “essentially stay still”, could be used to innovate.
Panellists included James Knightley of ING, Ed Bracken of Morgan Stanley, Stephen Fisher of BlackRock, Matthias Graulich of Deutsche Boerse, Michael Huertas of Dentons and Hubertus Vaeth of Frankfurt Main Finance.
One panellist said: “We’re putting a lot of capital in to preserve the status quo, in an environment where, even with equivalence, its effectiveness may be dampened by certain EU member states that will demand that you have to have an office on the ground.”
Panellists explained that equivalence is something that the UK has been pushing to effectively secure access from London to the continent, but they noted that the shape of EU policy will “change without the UK”.
The UK has brought many proposals relating to financial services to the EU, which one panellist said would “not have seen the light of day” otherwise.
Another panellist noted London’s place as the financial capital of Europe, where everything sat under one regime and framework, with 95 percent of financial business taking place in London.
He noted that, post-Brexit, these regulatory frameworks will no longer apply and will be something that the EU is looking at as a potential concern.
The panellist explained that the EU saw in 2008 that financial services could be a big threat if something goes wrong, and a lack of regulatory control would “hardly be acceptable from an EU perspective”, given the breadth of the UK’s financial services industry.
A panellist said that regulators have an “overarching objective of client protection”, but politics gets in the way of these solutions.
During a session on Brexit, panellists discussed the implications of Brexit and how money that is being spent on IT to “essentially stay still”, could be used to innovate.
Panellists included James Knightley of ING, Ed Bracken of Morgan Stanley, Stephen Fisher of BlackRock, Matthias Graulich of Deutsche Boerse, Michael Huertas of Dentons and Hubertus Vaeth of Frankfurt Main Finance.
One panellist said: “We’re putting a lot of capital in to preserve the status quo, in an environment where, even with equivalence, its effectiveness may be dampened by certain EU member states that will demand that you have to have an office on the ground.”
Panellists explained that equivalence is something that the UK has been pushing to effectively secure access from London to the continent, but they noted that the shape of EU policy will “change without the UK”.
The UK has brought many proposals relating to financial services to the EU, which one panellist said would “not have seen the light of day” otherwise.
Another panellist noted London’s place as the financial capital of Europe, where everything sat under one regime and framework, with 95 percent of financial business taking place in London.
He noted that, post-Brexit, these regulatory frameworks will no longer apply and will be something that the EU is looking at as a potential concern.
The panellist explained that the EU saw in 2008 that financial services could be a big threat if something goes wrong, and a lack of regulatory control would “hardly be acceptable from an EU perspective”, given the breadth of the UK’s financial services industry.
A panellist said that regulators have an “overarching objective of client protection”, but politics gets in the way of these solutions.
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