With the very real possibility of a ‘no deal’ Brexit, the UK faces a longer period of uncertainty as key trade and requirements are re-legislated. Various sources have now confirmed that the UK is looking to develop a “distinct regulatory framework” to secure a long-term competitive advantage for its finance sector – namely banks, fund managers and insurers. Whilst this is a potentially achievable and worthy long-term goal, in reality, the finance sector will not simply stop because the UK has not yet negotiated the means to support it.
Many experts, conversely, believe the best course of action would be to maintain the current legislation being utilised to ensure consistency. It is this uncertainty, therefore, that opens the door for Paris and Macron to usurp the crown.
From a business perspective, 200 miles and a one hour time-difference have little or no operational impact. At slightly over two hours from London by Eurostar, Paris is proving to be an extremely attractive option. Prolonged negotiations around Brexit are, in short, playing into the hands of Macron and a French capital determined to take advantage and make Paris the new financial hub of Europe.
Paris currently hosts a number of the largest banks in the EU, as well as the European Securities Markets Authority (ESMA) and the Euronext stock exchange. Logically, many City firms will simply look to relocate their EU-focussed operations to the closest area with comparable regulation – the path of least resistance from a business perspective. Moving activity to Paris, for example, would require little to no regulatory amendment or associated disruption.
In a nutshell, businesses exist to make money – shifting location is the antithesis of that goal, usually representing expenditure with no real rhyme or reason. For this reason, businesses do not want to up sticks and move their operations elsewhere. This is the challenge that Macron is dealing with – encouraging financial institutions to see Paris as the long-term future, instead of just a stop-gap… a challenge that he is rising to admirably as a former investment banker.
While Mrs May dithers, M. Macron deals. As well as taking steps to reduce the cost of employment, he is also courting investors – encouraging them to place their valuable funds firmly within French borders. Speaking with Reuters following a dinner of international financiers, an advisor to the president confirmed that “Investors were rather blown away with the president’s vision.” A spokesperson for BlackRock, one of the world’s largest asset management firms, agreed. She stated that “yesterday’s session was beneficial to the investors present and reinforced the view that the opportunities in France are the strongest they have been in two decades.”
Brexit is a topic of much contention across the European Union today. Whilst many of those based in the UK believe it will have no effect on its economic standing, those based in other EU countries disagree. Macron in particular. The French President is now taking significant steps to lure not only financial business away from London, but also its top talent.
With the very real possibility of a ‘no deal’ Brexit, the UK faces a longer period of uncertainty as key trade and communications requirements are re-legislated. Various sources have now confirmed that the UK is looking to develop a “distinct regulatory framework” to secure a long-term competitive advantage for its finance sector – namely banks, fund managers and insurers. Whilst this is a potentially achievable and worthy long-term goal, in reality, the finance sector will not simply stop because the UK has not yet negotiated the means to support it.
Many experts, conversely, believe the best course of action would be to maintain the current legislation being utilised to ensure consistency. It is this uncertainty, therefore, that opens the door for Paris and Macron to usurp the crown.
From a business perspective, 200 miles and a one hour time-difference have little or no operational impact. At slightly over two hours from London by Eurostar, Paris is proving to be an extremely attractive option. Prolonged negotiations around Brexit are, in short, playing into the hands of Macron and a French capital determined to take advantage and make Paris the new financial hub of Europe.
Paris currently hosts a number of the largest banks in the EU, as well as the European Securities Markets Authority (ESMA) and the Euronext stock exchange. Logically, many City firms will simply look to relocate their EU-focussed operations to the closest area with comparable regulation – the path of least resistance from a business perspective. Moving activity to Paris, for example, would require little to no regulatory amendment or associated disruption.
In a nutshell, businesses exist to make money – shifting location is the antithesis of that goal, usually representing expenditure with no real rhyme or reason. For this reason, businesses do not want to up sticks and move their operations elsewhere. This is the challenge that Macron is dealing with – encouraging financial institutions to see Paris as the long-term future, instead of just a stop-gap… a challenge that he is rising to admirably as a former investment banker.
While Mrs May dithers, M. Macron deals. As well as taking steps to reduce the cost of employment, he is also courting investors – encouraging them to place their valuable funds firmly within French borders. Speaking with Reuters following a dinner of international financiers, an advisor to the president confirmed that “Investors were rather blown away with the president’s vision.” A spokesperson for BlackRock, one of the world’s largest asset management firms, agreed. She stated that “yesterday’s session was beneficial to the investors present and reinforced the view that the opportunities in France are the strongest they have been in two decades.”
The financial world is evolving at a pace not seen since Thatcher secured London’s crown almost four decades ago. As the UK looks to exit the European Union with very few guarantees in place for business continuity, through indecision and an incoherent strategy it runs a very real risk of rapidly losing ground to its European rivals. France, through increased investment and visionary leadership, looks increasingly well placed to seize its crown.