Issue link: https://maltatoday.uberflip.com/i/1164933
12.09.19 7 FOREIGN NEWS COUNTDOWN TO BREXIT 49 DAYS TO GO both of Britain's main political par- ties as dozens of lawmakers put what they see as the United Kingdom's fate above that of party loyalty. The divisions in the opposition La- bour Party over Brexit were on display on Wednesday, when its deputy lead- er, Tom Watson, said he supported pressing for a second referendum be- fore an early national election. "So let's deal with Brexit, in a ref- erendum, where every person can have their say, and then come together and fight an election on Labour's pos- itive social agenda on our own terms, not on Boris Johnson's Brexit 'do or die'," he said in a speech in London. His argument, which puts him at odds with leader Jeremy Corbyn, is that an election might fail to resolve the deadlock over Brexit. Corbyn says Labour would offer the people a sec- ond referendum on a credible option to leave against remaining in the EU after an election. Nigel Farage, leader of the Brex- it Party which could take votes away from both main parties, offered John- son an election pact on Wednesday but warned that unless there was a clean break with the EU, the Conserv- atives would take a "real kicking" in any election and could not win a ma- jority. "If we go beyond the 31st of October and we are still a member of the Eu- ropean Union — which looks increas- ingly likely — then a lot of votes will shift from the Conservative Party to the Brexit Party," Farage told report- ers. THE delay of Brexit is caused by divisions on how the United Kingdom should leave the EU and what the fu- ture relationship should look like. Possible solutions range from revoking Article 50, the piece of legislation that en- acted the result of the 2016 referendum and committed the UK to leave, to leaving the EU with out a deal, a so- called 'hard Brexit'. A withdrawal agreement drafted by former Prime Min- ster eresa May was defeated three times with MPs vot- ing against it. ere has been a petition to cancel Brexit with millions signing it, marches demanding a second referendum, and marches about the way new Prime Minster Boris Johnson is handling the withdrawal process. e net result is that many, many business owners across all sectors and all parts of the UK are unsure of what the future holds for them and their employees. Fintech and Brexit London is perceived as the 'Fintech Capital of Europe'. It has an ever-growing number of start-ups and established companies, all of which have a positive impact on the city. Job creation has increased by 61% over the past year ac- cording to recruitment firms across London. is growth makes financial technology the fastest growing sector in the London economy. With such promising statistics, how will Brexit affect growth and positive impact within the current economic state? e UK's fintech sector has continued to progress since the Brexit vote. e United Kingdom has always encour- aged innovation, creating a surge of growth, thus increas- ing investment opportunities for not only local investors but also international investors. is injection of finance aids the growth of fintech companies. Brexit, however, seems to be limiting UK fintech com- panies operating with European companies, with factors such as trade and employment becoming valid concerns. Brexit has given Fintech companies and the investment community pause for thought, with many risk factors to consider. is has not hindered growth by any means but still provides uncertainty in Europe whilst negotiations continue in the weeks, months and possibly years ahead. If we start to see a loss of investment and talent from the European region, this can be compensated by potential employees and job seekers from other territories, such as Asia, coming to the UK. London will still remain a global capital of fintech, but that's not to say there may be a de- cline in growth compared to other regions. How can fintech companies prepare for the worst? • Despite the growing fintech sector in London, pre- paring for the worst is diligent and necessary. One means of preparation will be to build investor and international relationships which if not already done, will be vital for future development. • Doing so provides opportunities following the possi- ble disinterest of EU and local investors. • Any estate agent will tell you property sales are in decline, and the reason for this is due to the uncer- tainty of the property market following Brexit, so people are staying put. is applies to the job sector where staff are staying in their positions due to em- ployment uncertainty and vice versa, where compa- nies are retaining staff and reducing turnover. • As mentioned before, the London fintech market is currently in a strong position, and is filled with inno- vative and forward-thinking companies. • It goes without saying that for many companies, if not all, service is key as customers are their bread and butter. It would be advisable to improve current services or to create and onboard new services to de- liver value to your existing and future clientele. Giv- ing your clients a reason to stay. • A localised service makes you specialised and fo- cused on what you offer and to whom. If Brexit were to limit or cut off your current European clients, you will need to look to expanding your offerings to ac- commodate for your 'once was' audience and adapt to change. To conclude e UK remains the most welcoming country for fintech businesses in terms of the regulatory framework, so re- gardless of how Brexit unfolds, it will maintain a certain competitive edge over its European neighbours. How Brexit will affect Fintech companies in the UK Boris Johnson