Major FinTech firms set to lead a mass exodus of businesses from the UK
Treasury spokesman claims "hard Brexit" could cost the UK up to £200bn
by Abi Moses on 27th February, 2017
The government's hopes of turning the UK into a world leader in the financial technology has been dealt a huge setback after the chief executive of a leading firm has claimed that an exodus of companies in the sector has begun.
Simon Black, Chief Executive of PPRO Group, admitted that his firm, one of the fastest-growing businesses in Europe are set to start an operation in Luxembourg. The move comes as Brexit has led to concerns over whether UK-based companies would be able to continuing trading in the EU as they do under current passport rules, granted to all European Union member states.
Mr Black said "I don’t know of a licensed company in the UK that isn’t looking at options. Everyone is thinking about it and anyone that is any size, that is employing more than 10 people, is active. The exodus is beginning. It will be more visible in 2018."
Despite Brexit negotiations not yet commencing, Black admits his firm, and others cannot afford to wait. He said, "We have to plan for the scenarios when passporting ends, and that means we have to get a in another EU country. The reason we can’t wait for results from the negotiation is that the full application process can take, in some countries, from six months right up to 18 months, and maybe longer. Then you need to recruit locally, you need specialists in compliance. It is a really big undertaking."
A lot could depend on the outcome of the French presidential campaign, with two leading runners proposing two very different plans for their country. Marine Le Pen of the National Front has pledged to withdraw France from the eurozone and "reconsider" their place in the European Union. By contrast, centrist candidate, Emmanuel Macron has claimed, that if elected, he would take a tough line in Brexit negotiations, urging businesses to go to France.
On Macron's comments, Black said "I expect passporting rights will be one of the last things that gets sorted in the negotiations. After listening to Macron, I think the EU guys are going to hold on to that bargaining chip. There are incredibly envious eyes being cast towards our financial services industry. We can’t wait. That’s the point, and there are many other companies like us."
Susan Kramer, the Liberal Democrat Treasury spokesperson, has slammed to Conservative's Brexit negotiations, claiming "George Osborne promised to make London the for but under this Conservative Brexit government it will only be job that see any dramatic growth. Ministers are in complete denial about the scale of the exodus. Independent estimates say a hard Brexit will cost the UK up to £200bn over the next 15 years. Germany has overtaken us as the fastest growing economy in Europe, and the EU is now the US. Yet Theresa May wants to surgically remove us from the European Single Market. And to think that the Conservatives used to be the party of business."
With the EU out-performing the US and the UK economy wavering under the cloud of pending Brexit negotiations, there are likely to be significant fluctuations in currency values over the coming months. You can certainly find great value in currency trading, read the Spread Betting blog and make an informed decision on how political turmoil will affect the Pound, Euro and Dollar, then start trading with one of our partner brokers.
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