Interesting Article in today's Irish Times under tag line "Fintech sector is strong but challenges lie ahead".
Brexit has taken everyone in the European financial services industry by surprise.
As an Irish Fintech lawyer I am astounded by the number of calls and inquiries I have been receiving since the Brexit vote from significant financial institutions who are only now conducting diligence on the suitability of Ireland as a new European hub for their financial service/insurance operations- Risk management anyone?
The one thing that is clear is from the Brexit vote is that nothing is clear.
Brexit could have a truly transformational impact upon Ireland's professional services industry generally, and our Fintech sector in particular- for good and bad.
What is worrying however is that the "nothing is clear" position is continuing. If Brexit does indeed result in a flight from "the City" then Ireland needs to bring clarity to its position on Brexit now- and to demonstrate and shout that clarity from the roof tops.
Lets not be naive. An aggressive cue has already formed into London City Airport arrivals lounge, with service providers from, and more importantly representatives from the Regulators of ,several competitor economies in the EU, swinging their elbows in the queue.
If there are going to be any winners from Brexit its going to be those countries which are first in line in rolling out the welcome mat and delivering regulatory reassurance that a painless relocation can be achieved on a transparent and predictable basis.
The Irish government needs to ensure that the Irish regulator has the resources in terms of personnel and passion to ensure that we move to the head of this queue.
We also need to have a clear integrated strategy to deal with the impact which a sudden influx of financial service companies will have upon Ireland's professional and regulatory ecosystem- where expertise, space and attention could well become pressured.
We need to de-uncertian the uncertainty around Brexit now!
Brexit uncertainty “Brexit has undoubtedly caused uncertainty,” explains Anna Scally, fintech leader at KPMG Ireland. “Up until now Irish firms have had a very good working relationship with the fintech industry in London which has already grown considerably in strength and depth. So naturally one of the big uncertainties is whether we can continue that good relationship between Ireland and London,” she says. “There are still major unknowns in the UK market,” says Scally. “The amount of uncertainty surrounding everything from access to European markets, the regulatory environment and investment and [venture capital] mean a cut to corporation tax in isolation isn’t going to be enough to relieve people’s fears.”