Costly EU regulation has not made financial services safer or better – but Brexit is no silver bullet

From: City A.M.

Philip Booth

The City is split when it comes to Brexit. Certainly, the larger City institutions with significant EU business tend to side with Remain. However, smaller companies and those with a more global business model are more divided.

The supporters of the EU value the Single Market. They seem to believe that it promotes free trade and reduces regulation: in reality it does neither. The main benefit of the Single Market is that it reduces the costs for large companies of dealing with up to 28 regulatory systems. Meanwhile, smaller companies that do not trade with the EU suffer from the full force of EU regulation.

Whether we are talking about the regulation of securities markets, the fund management industry or the insurance industry – all huge export earners for the UK – responsibility for regulation has become centralised in Brussels.

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