Brexit slowly becoming a Farce.

[Baxter Parp]

1 minute ago, MixuFruit said:

Given all the main investment companies have opened up offices in Dublin, Luxembourg etc, nothing much? Or am I being daft?

you don't think the financial flight to EU nations won't cause any issues at all?

[bendan]

1 hour ago, renton said:

It's fairly incredible to describe a tariff free deal on goods (mostly) where we have a deficit with the EU and tariffs on services where we have a surplus vs. The EU as in any way a good deal.

The financial passporting measures alone will see a huge flight in jobs from London to Europe.

What are the tariffs on services, out of interest?

[Baxter Parp]

1 minute ago, MixuFruit said:

I don't know. We need @Ross. to explain things. As far as I can tell I can keep investing as normal, several of my funds switched from London to Dublin a while ago.

So, presumably, any taxes due will go to RoI, right?

[bendan]

2 minutes ago, Baxter Parp said:

you don't think the financial flight to EU nations won't cause any issues at all?

 

1 minute ago, MixuFruit said:

I don't know. We need @Ross. to explain things. As far as I can tell I can keep investing as normal, several of my funds switched from London to Dublin a while ago.

You would think most movement will already have taken place. Most of the money still in London is not EU money, so it's hard to see why non-EU customers would be especially keen to have their money managed in the EU.

[Baxter Parp]

Just now, MixuFruit said:

What taxes?

Corporation mostly.  Capital gains peripherally.

[Baxter Parp]

1 minute ago, bendan said:

 

You would think most movement will already have taken place. Most of the money still in London is not EU money, so it's hard to see why non-EU customers would be especially keen to have their money managed in the EU.

Because the UK has just cut off the UK financial sector from the EU.

[bendan]

1 minute ago, Baxter Parp said:

Because the UK has just cut off the UK financial sector from the EU.

When you say 'cut off', what is your perception of what this means in practice? And how would this affect the *non-EU* customers I was talking about?

[renton]

16 minutes ago, MixuFruit said:

I don't know. We need @Ross. to explain things. As far as I can tell I can keep investing as normal, several of my funds switched from London to Dublin a while ago.

Take something like the financial passporting rules - that's the mechanism that allows banks to sell products and services across EU borders as if they were present in the market of sale. Before this operations in Europe could be carried out by London (or Edinburgh) based staff. In order to maintain those operations the various banks have incorporated subsidiary companies in Europe, and staff them from there.

Thus, jobs that would have been UK based will now be EU based. That is middle class, white collar jobs that will now cease to be, and any growth in those markets will not reflect growth of opportunities and jobs in the UK, with the attendant impact on UK economic growth and tax base.

Edited December 26, 2020 by renton

[Baxter Parp]

Just now, bendan said:

When you say 'cut off', what is your perception of what this means in practice? And how would this affect the *non-EU* customers I was talking about?

Before the UK had free and unfettered access to the EU financial markets now it does not.  Ta dah.

[Ross.]

11 minutes ago, MixuFruit said:

I don't know. We need @Ross. to explain things. As far as I can tell I can keep investing as normal, several of my funds switched from London to Dublin a while ago.

My employer recently registered a company in Ireland and will have a small office in Dublin, mostly a paper thing. Almost everyone I deal with outside of our company has moved some or all of the clearing staff to Dublin. The registrars are about the only exception to that. Also noticed a huge number of ETF’s being redomiciled in the last year, which has been a huge pain in the arse to process on our systems.

[bendan]

Just now, Baxter Parp said:

Before the UK had free and unfettered access to the EU financial markets now it does not.  Ta dah.

You're not answering my question, and you've introduced yet more vague terms that you don't explain.

[Baxter Parp]

Just now, MixuFruit said:

Well I'll still pay CG here but point taken on corporation tax.

You won't pay CG here if you're investing in the RoI instead of London.

[Highlandmagyar 2nd Tier]

1 hour ago, Carnoustie Young Guvnor said:

Tell them what?  Can you please lube up before you plough us like a field?  

Amazing to watch your British nationalism cause you to embrace Boris and Brexit.  It really does warp people's minds

Whoosh! You really are a tit! Haha

[Baxter Parp]

Just now, bendan said:

You're not answering my question, and you've introduced yet more vague terms that you don't explain.

The UK has crowbarred its own knee by limiting its profits when it invests in EU assets. For the first time in decades London is at a disadvantage because it will have to pay tariffs on UK/EU financial services.

[Ross.]

34 minutes ago, Baxter Parp said:

It'll be interesting to see what happens to London without a deal on financial services. To say the least.

London has cornered the market in dodgy money, it’s easily the most corrupt exchange there is. The amounts involved make huge differences to liquidity in some markets and a great number of market makers, clearing houses and traders make plenty from it. I think it will suit both the EU and the UK to let the City continue as it is. The EU gets to pretend it is clean while getting the ancillary benefits of extra money flowing through the markets, and the UK gets the direct benefits of people earning wages and stamp duty and all that malarkey.

[Baxter Parp]

3 minutes ago, Ross. said:

London has cornered the market in dodgy money, it’s easily the most corrupt exchange there is. The amounts involved make huge differences to liquidity in some markets and a great number of market makers, clearing houses and traders make plenty from it. I think it will suit both the EU and the UK to let the City continue as it is. The EU gets to pretend it is clean while getting the ancillary benefits of extra money flowing through the markets, and the UK gets the direct benefits of people earning wages and stamp duty and all that malarkey.

The UK financial services market cannot continue as it is without a deal with the EU.

[bendan]

7 minutes ago, Baxter Parp said:

The UK has crowbarred its own knee by limiting its profits when it invests in EU assets. For the first time in decades London is at a disadvantage because it will have to pay tariffs on UK/EU financial services.

So presumably you believe Mixu's RoI-based providers are now at a disadvantage in servicing him as a customer - as they 'have to pay tariffs on UK/EU financial services'. What are these tariffs?

[Baxter Parp]

Just now, bendan said:

So presumably you believe Mixu's RoI-based providers are now at a disadvantage in servicing him as a customer - as they 'have to pay tariffs on UK/EU financial services'. What are these tariffs?

Who knows?

[bendan]

3 minutes ago, Baxter Parp said:

Who knows?

You just said there were tariffs. I had thought that you, in fact, might know.

[Ross.]

5 minutes ago, Baxter Parp said:

The UK financial services market cannot continue as it is without a deal with the EU.

If you are a broker you simply register companies in more than once jurisdiction and route trades via the relevant company at the time of trade. There will be additional costs involved but probably just end up seeing the majors squeeze out the small fry as they have that in place already and don’t really need to worry about the extra cost involved in setting up and operating that way.