Yesterday, CEO at InvestCor Corporate, George Giannoulakis gave interview to a reputable Forex website, AtoZ Forex about the impact of Brexit on UK Forex brokers EU passporting.
AtoZForex reporter: Before, diving into the more detailed questions. Do you believe that Britain will remain a member of the EU, despite the “Leave campaign” is strengthening?
George Giannoulakis “I believe that they will ultimately remain, but the strength of the leave campaign has I believe taken the EU a bit by surprise. I think this is feedback that the EU needs to seriously take on board because the UK is only echoing the feelings of a lot of people in the EU who have been disappointed with the EU. Although I believe that the UK will remain, this is an important shot across the bow for the EU. If they do not identify and deal with the cause of the discontent, this does not bode well for the future. Either way, the volatility of this week will be promising for FX companies.”
AtoZForex reporter: In case, poll results end up with Brexit, the market might be up for a major change. Could we expect a new shift of consolidation in the industry?
George Giannoulakis “Consolidation is already taking place. Structures and cross-border transactions will have to be reviewed to UK clients should the UK elect to leave but this may certainly be a catalyst for either consolidation or joint ventures. New applications will certainly be challenging from both a regulatory and financial perspective. We, at InvestCor, specialize in finding solutions for such brokers.“
AtoZForex reporter: If the UK brokers lose their EU passporting, what should they do?
George Giannoulakis “Things will not change overnight. There will be a transitional period. The passporting rights are material for the both UK and the EU and both will want to ensure some form of minimal interaction. Notwithstanding the previous comments, I will be surprised if commercial common sense does not prevail over perceived political advantage. Should the UK leave the EU, a new regulatory regime will have to be introduced, but the negotiations will be tough. I suspect that the EU will have the upper hand should such negotiations be required by the UK, ultimately losing some ground in the market and possibly slightly diminish its importance as the tier one financial centre.“
AtoZForex reporter: It is clear that there is Brexit impact on UK Forex brokers EU passporting, but what are the other Forex industry concerns?
George Giannoulakis “The FX business is global. Should the Brexit actually materialize, both UK and non-UK brokers are going to be impacted. For UK brokers, a lot will depend on the target market of each broker and its importance or reliance on EU clients. Also, a lot will depend on what the UK negotiates with other countries outside the EU and if these negotiations will produce more or less favourable results than what currently exists between such third countries and the EU. For non-UK brokers, a lot will depend on the importance of the UK market to their company and how quickly the UK can establish certainty over how it will deal with the EU and third countries (although the latter is expected to take years to finalise).”
Read the full story: http://atozforex.com/news/brexit-impact-on-uk-forex-brokers-eu-passporting/