UK’s Brexit deal gets some fintech love
The UK’s draft Brexit deal may have ushered in a wave of chaos and Conservative party resignations, but some in the fintech industry have given it conditional love.
Today (15 November), Prime Minister Theresa May agreed a draft deal with Brussels. The deal has been approved by the cabinet.
It’s a 585-page document so no space to cite it all. Some of it includes how much money will be paid to the EU, a 21-month transition period, and commitments on the rights of EU citizens in the UK and vice versa.
It is not a trade deal – that still needs to be worked out in the transition period.
It’s a fluid situation at the time of writing, but some Conservative MPs have been resigning as they feel the deal goes back on what was discussed and gives the EU too much power.
The UK’s biggest banks have also been summoned for a call with City regulators over market turbulence. But that’s not a major surprise.
Amidst all this hate and chaos (or however you see it), some in fintech are more sanguine.
Wim Mijs, CEO of the European Banking Federation (EBF), says: “The Brexit withdrawal agreement between the UK and the EU is a late but necessary step that would avoid a hard Brexit cliff-edge scenario once it is endorsed under the democratic process in the UK and in the EU.
“The transition period will help resolve most – but not all – of the immediate risks of Brexit in the short run; further public action will be needed to address other specific risks to complement the financial sector’s own preparation.”
Mijs adds: “For the long term, the agreement opens the door to further discussions on the future relationship between the UK and the EU.
The Personal Investment Management & Financial Advice Association (PIMFA) also “welcomes the certainty that these proposals can provide on the transitional arrangements and on allowing for a one-step Brexit, both of which PIMFA has consistently argued for since the referendum”.
PIMFA CEO Liz Field adds: “The possibilities for lengthening transition are also welcome in this context, and overall the prospect offered of a sensibly managed withdrawal from the EU with a one-step change for our firms at the end of transition will minimise disruption to business.”
Ultimately, opinions will vary depending on each firm or organisation. But fintech really wants stability and based on my experiences is generally full of people with an open-minded view of the world.