What has the Fintech Industry Actually Learnt From the new Brexit White Paper?
While Brexit rolls on, and we edge nearer to the start of the negotiations, the government gave a little more of its position away at the beginning of February.
After Parliament voted, by a huge majority, to give Theresa May the authority to trigger Article 50, the government presented its white paper outlining the proposals for the negotiations on Thursday, February 2nd.
As a key theme of the Brexit debate has been its potential affect on the financial services industry, and fintech too, what have we actually learnt from the government’s white paper, and how will it affect the fintech sector?
Cooperation on Financial Services Regulation
The paper talks about the UK seeking to cooperate on financial services regulation, as well as “aiming for the freest possible trade in financial services between the UK and EU member states”.
This suggests the obvious though. The UK wants little or no change in its relationship with the EU with regard to financial services.
As has been said a number of times on this too, European officials will see this as picking and choosing the best parts of EU membership, and dropping the freedom of movement as well as other negative points.
The Customs Union
With reference to the customs union the white paper goes no further than the Prime Minister’s previous speech, and talks about a new customs agreement, with the UK being outside of the union.
Again, as with the original speech, it doesn’t outline what this new agreement would involve.
Transitional Arrangement
Although there have been references made to a potential transitional arrangement after the conclusion of the negotiations, there has previously been very little detail relating to it.
In the Brexit white paper though, the government began to outline what it would mean, and here we find some hope for the financial services industry.
The document doesn’t specifically mention passporting, but it does make reference to differing transitional agreements for different sectors, and refers to a potential transitional agreement for regulatory frameworks.
This policy movement, along with the new fintech investment conference to be held in April with support from government, shows how high a priority financial services is for the governments negotiations, but the sector is right to be apprehensive.
Passporting is probably the single-most important issue for fintech businesses, and the lack of clarity on this is hitting the sector hard.
The uncertainty surrounding passporting is continuing to threaten jobs, as well as investment in the sector, especially after comments from Valerie Pecresse, president of Ile-de-France, who said that there is fierce competition between Europe’s capital cities vying to take business from the City of London.
With uncertainty limiting budgets for fintech solutions, many businesses are looking to proven solutions for their fintech needs.
If you are looking to hear more about how a built, but bespoke, backend platform can help your business, email us at hello@trusek.com or call us on 020 7048 0470.
