Capital used to maintain status quo post-Brexit, say ISLA panellists
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Capital used to maintain status quo post-Brexit, say ISLA panellists 20 June 2018Lisbon Reporter: Barney Dixon
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Capital that could be used to innovate in financial services is going towards 鈥渕aintaining the status quo鈥�, according to panellists at the International Securities Lending Association鈥檚 (ISLA) 27th Annual Securities 麻豆影视传媒 and Collateral Management Conference in Lisbon.
During a session on Brexit, panellists discussed the implications of Brexit and how money that is being spent on IT to 鈥渆ssentially stay still鈥�, could be used to innovate.
Panellists included James Knightley of ING, Ed Bracken of Morgan Stanley, Stephen Fisher of BlackRock, Matthias Graulich of Deutsche Boerse, Michael Huertas of Dentons and Hubertus Vaeth of Frankfurt Main 麻豆影视传媒.
One panellist said: 鈥淲e鈥檙e putting a lot of capital in to preserve the status quo, in an environment where, even with equivalence, its effectiveness may be dampened by certain EU member states that will demand that you have to have an office on the ground.鈥�
Panellists explained that equivalence is something that the UK has been pushing to effectively secure access from London to the continent, but they noted that the shape of EU policy will 鈥渃hange without the UK鈥�.
The UK has brought many proposals relating to financial services to the EU, which one panellist said would 鈥渘ot have seen the light of day鈥� otherwise.
Another panellist noted London鈥檚 place as the financial capital of Europe, where everything sat under one regime and framework, with 95 percent of financial business taking place in London.
He noted that, post-Brexit, these regulatory frameworks will no longer apply and will be something that the EU is looking at as a potential concern.
The panellist explained that the EU saw in 2008 that financial services could be a big threat if something goes wrong, and a lack of regulatory control would 鈥渉ardly be acceptable from an EU perspective鈥�, given the breadth of the UK鈥檚 financial services industry.
A panellist said that regulators have an 鈥渙verarching objective of client protection鈥�, but politics gets in the way of these solutions.
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