Politics, politics, politics (so long and thanks for all the fish)

[Rorschach]

Ok Let's get some "Project No Fear" up in here...

https://www.bovill.com/london-set-t...s-over-1000-eu-firms-plan-to-open-uk-offices/

London set to remain financial services capital of Europe as over 1000 EU firms plan to open UK offices

20 January 2020

NEWS RELEASE: More than 1,400 EU-based firms have applied for permission to operate in the UK after Brexit, with over 1,000 of these planning to establish their first UK office, according to a Freedom of Information request (FOI) by financial regulatory consultancy Bovill. The FOI provides evidence that London and the UK will continue to be a leading player on the global financial stage after Brexit.

The FOI revealed that by October 2019, the FCA had received a total of 1,441 applications from firms to use the Temporary Permission Regime (TPR). When the current passporting system becomes defunct, the TPR will allow European Economic Area firms and funds to continue to operate in the UK, whilst they seek full authorisation from UK regulators.

The FOI also found that 83% of passporting firms that applied under the TPR currently operate under a ‘service’ passport, which means they do not currently have an office in the UK. This suggests that over 1,000 firms intend to set up an office in the UK for the first time after Brexit.

The FOI also shared the breakdown of firm type for those that have applied for the TPR. This includes more than 100 banks, which will either be setting up offices in London for the first time or boosting their current UK presence. Firms planning to move to the UK span all sectors in financial services including asset managers, insurers, exchanges and fintech firms.

Michael Johnson, a consultant at Bovill, commented:

“These figures clearly show that many firms see the UK as Europe’s premier financial services hub. This is a clear vote of confidence in the UK financial services sector and good news for the UK’s service economy overall. The high proportion of firms without an existing UK branch that have applied for the TPR suggests there will be some movement of staff from these EU27 firms into the UK.

“Although much attention has been given to the number of UK firms moving staff and operations into Europe, there is also likely to be movement in the opposite direction. The results of the FOI may have been anticipated by those in the industry, many of whom have recognised for some time that London remains Europe’s only truly global financial centre, and firms on the continent with global aspirations will need to continue to do business here.”

The FOI gave a further breakdown of TPR submissions by the firm’s home state. The country from which the highest number of firms sent TPR submissions was Ireland at 228. Second was France with 170 submissions, Cyprus was third and Germany was fourth, with 165 and 149 submissions respectively.

Michael Johnson continued:

“The fact that Ireland tops the list is perhaps to be expected, given how interlinked the UK and Irish economies are and their shared strength in asset management. These numbers tell us that Irish firms want to continue this close relationship post Brexit and believe that a presence in London would be beneficial to them.

“With many French and German firms intending to establish a presence in the UK, coupled with the fact that France and Germany will be driving much of the EU’s future trade negotiation with the UK, it is clearly in the economic interest of both sides to secure a trade deal that benefits everyone.

“The position of Cyprus in the top four home states is more surprising. Cyprus is often used as a base for firms that want to be subject to a regulatory regime perceived as ‘lighter touch’ in order to passport into more tightly regulated jurisdictions such as the UK. Firms that have based themselves in a ‘light touch’ jurisdiction to take advantage of regulatory arbitrage, and now want to set up their business in the UK, may need to revisit their regulatory compliance if they wish to continue doing business in Europe’s largest financial services market.”

Ed O’Bree, a partner at Bovill, concluded:

“In practical terms, these figures mean that European firms will be buying office space, hiring staff and engaging legal and professional advisers in the UK. This augurs well for the UK economy, as the country will retain its reputation as a prime location for financial services in Europe.”

Other articles referencing this:

Over 1000 EU financial firms planning to open UK offices after Brexit: https://www.cityam.com/over-1000-eu-financial-firms-planning-to-open-uk-offices-after-brexit/

More than 1,000 European financial firms seek UK entry, despite Brexit uncertainty: https://www.thetimes.co.uk/article/...uk-entry-despite-brexit-uncertainty-dh6p5r0tk

EU financial firms flock to UK: https://euobserver.com/tickers/147191

Reverse Brexit? Report States Over a Thousand EU Financial Firms to Open Offices in the UK: https://www.crowdfundinsider.com/20...eu-financial-firms-to-open-offices-in-the-uk/



Sounds like Brexit really is leading to Economic Armageddon...somebody save us!!

EU firms are setting up satellite offices in the UK to access their UK clients because market access to the EU financial markets is being lost doesn't seem like a good news story on the face of it.

 

[scaramanga]

EU firms are setting up satellite offices in the UK to access their UK clients because market access to the EU financial markets is being lost doesn't seem like a good news story on the face of it.

At its worst it means that the UK will have to reciprocate with satellite offices and carry on as normal (as plenty have been saying for ages). At best it means that these EU companies expect costs and regulation to be lower in the UK than in the EU and they want to take advantage.

I'm happy with either of those outcomes and anything in the middle.

 

[glorygloryeze]

EU firms are setting up satellite offices in the UK to access their UK clients because market access to the EU financial markets is being lost doesn't seem like a good news story on the face of it.

Haha, hang on, i thought Brexit meant Financial firms were going to be leaving in their droves?
Perhaps the UK is still a very good and profitable place to do business even if it is not part of the EU?
Some of these firms are setting up offices in the UK for the first time. Imagine how people would be speaking if these firms were shutting down their operations in the UK and moving totally to the EU instead?
So, as i say, Economic Armageddon is coming...

 

[glorygloryeze]

At its worst it means that the UK will have to reciprocate with satellite offices and carry on as normal (as plenty have been saying for ages). At best it means that these EU companies expect costs and regulation to be lower in the UK than in the EU and they want to take advantage.

I'm happy with either of those outcomes and anything in the middle.

Shh, stop disrupting Project Fear...

 

[Rorschach]

Haha, hang on, i thought Brexit meant Financial firms were going to be leaving in their droves?
Perhaps the UK is still a very good and profitable place to do business even if it is not part of the EU?
Some of these firms are setting up offices in the UK for the first time. Imagine how people would be speaking if these firms were shutting down their operations in the UK and moving totally to the EU instead?
So, as i say, Economic Armageddon is coming...

They are. The UK offices are being setup to serve UK clients only.

 

[glorygloryeze]

They are. The UK offices are being setup to serve UK clients only.

Yes. And because the UK clients are profitable; plus when they set up offices here, that adds to the economy in terms of rents paid, staff employed (often specialists in the UK landscape such as legal), government tax income etc.
Economic Armageddon innit?

 

[Rorschach]

Yes. And because the UK clients are profitable; plus when they set up offices here, that adds to the economy in terms of rents paid, staff employed (often specialists in the UK landscape such as legal), government tax income etc.
Economic Armageddon innit?

Sure that's all good, but if the UK looses access the EU financial markets that is bad. Would you agree?

 

[glorygloryeze]

Sure that's all good, but if the UK looses access the EU financial markets that is bad. Would you agree?

As bad for both sides potentially. But as has been shown with the article i showed above, practical realities will kick in businesses will get on with doing what they do best: business.
Also, as can be seen, the UK is seen as a good place to do business regardless.

So we can see that leaving the EU is not going to lead to the hell in terms of financial services that Project Fear said at the time. Life will go on..

 

[Rorschach]

As bad for both sides potentially. But as has been shown with the article i showed above, practical realities will kick in businesses will get on with doing what they do best: business.
Also, as can be seen, the UK is seen as a good place to do business regardless.

So we can see that leaving the EU is not going to lead to the hell in terms of financial services that Project Fear said at the time. Life will go on..

I doubt it. The EU market is orders of magnitude bigger and hit to UK GDP has been put at 1.5% to 2%, but if you have figures to back up your equivalence claim I can be convinced.

I don't mind shooting the breeze in here but you have to park the childish project fear flimflam. There's more than enough of that divisive nonsence on twitter.

 

[glorygloryeze]

I doubt it. The EU market is orders of magnitude bigger and hit to UK GDP has been put at 1.5% to 2%, but if you have figures to back up your equivalence claim I can be convinced.

The EU market is bigger by numbers; but does that equal bigger in terms financial infrastructure, workforce expertise, efficiency, profitability etc? I think not necessarily. As i say, those companies are coming FROM EU countries TO the UK for good reasons.
Hit to any Economy right now could be argued to be much more to do with uncertainty over Brexit rather than Brexit happening itself.
As i say, Brexit is happening but companies are coming here to keep their toe in the UK market. They could just not bother and stay in the EU couldn't they (especially those who have previously not had a need to have a base in the UK until now; why spend all that effort to base yourself here if it's not worth it economically?)

I don't mind shooting the breeze in here but you have to park the childish project fear flimflam. There's more than enough of that divisive nonsence on twitter.

Would you prefer the term "Anti-Brexit hysteria"?

 

[Rorschach]

The EU market is bigger by numbers; but does that equal bigger in terms financial infrastructure, workforce expertise, efficiency, profitability etc? I think not necessarily. As i say, those companies are coming FROM EU countries TO the UK for good reasons.
Hit to any Economy right now could be argued to be much more to do with uncertainty over Brexit rather than Brexit happening itself.
As i say, Brexit is happening but companies are coming here to keep their toe in the UK market. They could just not bother and stay in the EU couldn't they (especially those who have previously not had a need to have a base in the UK until now; why spend all that effort to base yourself here if it's not worth it economically?)



Would you prefer the term "Anti-Brexit hysteria"?

I'd prefer to have a discussion with someone who doesn't feel the need to resort to petty labelling at all actually.

 

[parklane1]

Since Christmas our factories have been full to bursting. Having to turn work away because we can't meet anything like normal lead times at the minute.

As plenty predicted, the uncertainty was a problem - less uncertainty means more production.

 

[glorygloryeze]

I'd prefer to have a discussion with someone who doesn't feel the need to resort to petty labelling at all actually.

Ha, so i guess that includes yourself then (what with your "Unicorn" labelling of Brexit and Brexiteers)?

 

[Rorschach]

Ha, so i guess that includes yourself then (what with your "Unicorn" labelling of Brexit and Brexiteers)?

Did you actually scan back through my posts to see if I mentioned the word unicorn? Wow.

 

[K.D.D.D.D.Soc]

Saw some poor dear bemoaning losing her cushy little job with lovely expenses in Brussels and warning we didn't realise how powerful the EU was, she was oblivious to that was one of the reasons many voted to come out. Like all politicians she knows whats best for us and we should all beg for her pardon for putting her out.

 

[glorygloryeze]

Did you actually scan back through my posts to see if I mentioned the word unicorn? Wow.

I actually had you mixed up with another poster more recently, but i'm pretty sure you've been known to use such labels
If you can't take it, don't dish it

 

[glorygloryeze]

Saw some poor dear bemoaning losing her cushy little job with lovely expenses in Brussels and warning we didn't realise how powerful the EU was, she was oblivious to that was one of the reasons many voted to come out. Like all politicians she knows whats best for us and we should all beg for her pardon for putting her out.

Slowly, a lot of them are revealing themselves to be even more unaware of the temperature of the voting public as many of our more electorally accountable MPs...

 

[Rorschach]

I actually had you mixed up with another poster more recently, but i'm pretty sure you've been known to use such labels
If you can't take it, don't dish it

You'd be wrong.

You have reminded me however why I stop posting in this thread.

 

[SpurMeUp]

At its worst it means that the UK will have to reciprocate with satellite offices and carry on as normal (as plenty have been saying for ages). At best it means that these EU companies expect costs and regulation to be lower in the UK than in the EU and they want to take advantage.

I'm happy with either of those outcomes and anything in the middle.

That sounds like an inefficient economic setup. Or do you now believe that free trade does not create wealth, and trade barriers enhance wealth?

 

[scaramanga]

That sounds like an inefficient economic setup. Or do you now believe that free trade does not create wealth, and trade barriers enhance wealth?

It's a terribly inefficient setup caused by artificial barriers set up by the EU - the very opposite of free trade.