We’re still gazing into the crystal ball as to what the FinTech landscape looks like after Brexit. The ability for UK FinTech to prosper doesn’t just rely on tech expertise or funding (which will continue to be available). It still all depends on the extent to which the UK maintains regulatory alignment with the EU or achieves regulatory alignment under prospective trade deals.
Is the UK FinTech community ready for Brexit?
The UK FinTech community is not ready for Brexit. How can it be ready for something that it doesn’t know the shape of, what the rules on immigration are, what markets are open for expansion, and what rules will apply?
Why are financial services’ passporting rights so important?
Passporting rights are the bedrock of the freedom to provide services across Europe – the ability to be authorised in one member state and be able to provide the same services in the other 30 member without having to jump further regulatory hurdles due to “maximum harmonisation” of rules across the entire bloc.
What will happen if FinTech firms do not have access to passporting rights?
Without passporting, firms need to go through the legal and regulatory rigamarole of the rules in each jurisdiction – more complexity, cost and time for each firm.
Are there any other regulatory worries that could affect the UK FinTech scene in regards to Brexit?
As other so-called “Third Country Firms” have found, UK FinTechs could find themselves excluded if the UK regime doesn’t achieve “equivalence” and needing to fully establish themselves in potentially each jurisdiction. This all depends on the ability to negotiate the final Brexit trade deal.
If you have any questions about your business or would like to discuss any of the issues arising out of this KeyNote, please contact Adrian Shedden using the details below.
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.