‘Difficult to see opportunities’ in post-Brexit world, says ISLA panellists
20 June 2018 Lisbon
Image: Shutterstock
It’s difficult to see what the opportunities of Brexit are, at least for the financial services industry, according to panellists at the International Securities Lending Association’s (ISLA) 27th Annual Securities Finance and Collateral Management Conference in Lisbon.
One panellist, speaking on the Brexit Debate panel, said it was difficult to see what opportunities there were for firms, post-Brexit, but noted that his clients may begin to see a more “local touch” in Europe.
However, it was not all doom and gloom, with another panellist explaining that the UK government will be able to cement its own trade deals.
He compared the Frankfurt and London arrangement to Japan and Hong Kong, where Japan is a tightly regulated environment, while Hong Kong looks to the rest of the world.
Another panellist said that in the same way Frankfurt opened its doors the day after the Brexit referendum, Hong Kong has been “actively trying to get businesses to relocate there”.
He added: “I don’t think it’s fully manifested itself yet, but there’s potential for now.”
Another panellist said that Brexit might provide the opportunity for firms to build up around new infrastructures and technologies, with the masters of these areas becoming the “winners”.
Panellists were asked what, post-Brexit, the UK can rip up from EU legislation that will really benefit London’s financial centre, but the majority of them agreed that it was “more about amending thank ripping chunks out of the rulebook”.
One panellist explained: “If we live in a world where sovereign states are committed to what they have signed in the past, the UK can amend certain aspects, but they can’t completely depart from the principles it signed up to.”
“The policy makers of the EU have a very strong impetus to ensure that the UK remains an equal partner.”
“The rest of the world’s business will be done out of London. If we want equivalence, we have to keep the rulebook pretty much aligned.”
One panellist, speaking on the Brexit Debate panel, said it was difficult to see what opportunities there were for firms, post-Brexit, but noted that his clients may begin to see a more “local touch” in Europe.
However, it was not all doom and gloom, with another panellist explaining that the UK government will be able to cement its own trade deals.
He compared the Frankfurt and London arrangement to Japan and Hong Kong, where Japan is a tightly regulated environment, while Hong Kong looks to the rest of the world.
Another panellist said that in the same way Frankfurt opened its doors the day after the Brexit referendum, Hong Kong has been “actively trying to get businesses to relocate there”.
He added: “I don’t think it’s fully manifested itself yet, but there’s potential for now.”
Another panellist said that Brexit might provide the opportunity for firms to build up around new infrastructures and technologies, with the masters of these areas becoming the “winners”.
Panellists were asked what, post-Brexit, the UK can rip up from EU legislation that will really benefit London’s financial centre, but the majority of them agreed that it was “more about amending thank ripping chunks out of the rulebook”.
One panellist explained: “If we live in a world where sovereign states are committed to what they have signed in the past, the UK can amend certain aspects, but they can’t completely depart from the principles it signed up to.”
“The policy makers of the EU have a very strong impetus to ensure that the UK remains an equal partner.”
“The rest of the world’s business will be done out of London. If we want equivalence, we have to keep the rulebook pretty much aligned.”
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