What influence will the UK have on the rest of the world should it separate from the EU?
That was the question finance experts and thought leaders discussed at the first International Financing Review (IFR) Brexit Conclave, The Impact of Brexit on Capital Markets Regulation.
Here’s what some of them had to say following the shock EU Referendum outcome. View all their responses in The Impact of Brexit on Capital Markets Regulation
- Thomas Huertas, EY: The UK influence in world forums has to some extent been based on its ability to speak with and, to some extent, for the European Union as a whole in that it helped form a consensus within the EU. Therefore the voice that the UK had in international forums was not just the UK but more broadly on behalf of the EU. There certainly are people in the EU27 ready, willing and able to speak on these issues and they have definite views. That they would be content to have the UK have the same type of voice is, in my personal opinion, doubtful. And the UK’s ranking within the G20 or the G7 as standalone rather than part of the EU must be different than what it is today.
- Caroline Dawson, Clifford Chance: We can’t cut ourselves off from the rest of Europe. London banks service clients across the whole of the European Union. Those clients are still subject to European legislation and you’ve got things like, for example, reporting obligations under EMIR, under MiFID II, where clients might look to banks or investment firms to provide those services for them. If you’re outside of the EU and you’re not plugged into the EU infrastructure, you don’t have a voice in how those reporting arrangements are organized.
- Andrew Davidson, KPMG: We’ve talked a lot about passporting. It is a very topical issue and there are definitely a lot of legal issues associated with it but I think it’s also helpful to stand back from the legal side of things and think with a dose of pragmatism and practicality around this. There’s also a coverage model that goes with this. So it’s all very well to be able to passport services into, say, Germany and sell a swap there. But if you’re not able to turn up on a plane and go and see your client and service your client so easily, the coverage model starts to break down, so it’s helpful for institutions to understand their current coverage models when analyzing these issues and think from a business perspective too.
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