This paper aims to analyse the impact of a no-deal Brexit regarding the Financial Services Industry. Given the significant global integration of the UK’s financial services industry as the largest exporter and the host of the world’s leading centre of financial services, the gained observations and experiences from the example of Brexit shed greater light on determining the consequences of deglobalisation on the financial services industry.
It will be assumed that no further agreements regarding Financial Services will be reached between the UK and the EU. Further, the impact will be analysed solely for the industries of the two directly involved parties, thus the EU and the UK. The UK will be considered as the exporting nation and the focus will be laid on UK-based financial services firms, which as a whole represent the UK’s financial services industry.
The remainder of this paper is structured as follows: after an initial introduction to Brexit and the development of the relationship negotiation; in the third section, the status quo of the financial services industry ante Brexit will be depicted. In this regard, the legal framework will be emphasised, and the mutual reliance will be identified. In order to forecast the future situation of the financial services industry after the transition period, the legal relationship under WTO terms will be thematised in the fourth section. Within this section, a focus will be laid on the possible legal paths of the provision of financial services. Based on the derived legal aspects and considering the political influences in the absence of any relationship, in the fifth section, a post transition period outlook for the financial services industry will be given.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Development of Brexit and UK-EU Relationship Negotiations
- Status quo ante Brexit
- The UK's Financial Services Industry's Reliance on the EU
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper investigates the potential impact of a no-deal Brexit on the financial services industry, particularly focusing on the economic consequences of deglobalization. It explores the status quo of the financial services industry before Brexit, examines the legal framework governing financial services, and analyzes the potential implications of a WTO-based relationship.
- The economic consequences of deglobalization on the financial services industry.
- The role of the UK's financial services industry in the EU market.
- The impact of a no-deal Brexit on the legal framework for providing financial services.
- The future outlook for the financial services industry in a post-Brexit scenario.
- The implications of a no-deal Brexit for the City of London as a global financial center.
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins by introducing the concept of Brexit and its implications for global integration. It outlines the historical context of Euroscepticism in the UK and the process leading to the UK's withdrawal from the EU. The second chapter focuses on the negotiations surrounding the UK's future relationship with the EU, highlighting the limited time frame for reaching an agreement and the potential for a no-deal scenario. The third chapter delves into the pre-Brexit status quo of the financial services industry, examining the industry's reliance on the EU market and the legal framework governing the provision of financial services.
Schlüsselwörter (Keywords)
The primary keywords and focus topics include: Brexit, deglobalization, financial services, financial services industry, no-deal Brexit, WTO, equivalence, passporting, City of London, EU, UK, trade talks.
- Quote paper
- Lukas Kirchner (Author), 2020, Brexit’s Winners and Losers. An Empirical Analysis of Economic Effects of Deglobalisation on the Financial Services Industry, Munich, GRIN Verlag, https://www.grin.com/document/990925
