The verdict is in. And the world shook.
Not really.
As widely anticipated, U.K. Prime Minister Theresa May offered up the grand plan for Brexit — and it involves Britain leaving the European Union’s single market.
In the end, the EU’s requirement that members adapt to and allow free movement of people, as well as adhere to binding institutions such as the European Court of Justice, helped make the decision that the U.K. must, in fact, leave the single market (and the customs union).
So it turns out that Brexit really does mean exit.
May offered up 12 principles that will help guide the exit, and her administration said that Britain will not look to change or extend the two-year period that will mark negotiations on just how Brexit will proceed.
Reaction has been rather swift, and many commentators are stating that there will be less investment from other nations into Britain and exports are likely to slow from them toward that country.
The exit from the single market is no revelation, as May has been stating for a while that the nation would walk away from the court jurisdiction, and the acceptance of free movement of people, goods and services would mean adhering to that oversight. May has said that she would look to propose a “bold and ambitious” free-trade pact that could combine some single-market functions. Most glaring would be the stated goal of letting the city (that would be the financial center of London) continue to offer financial services across the pond. This, of course, is an attempt to keep banks and other financial firms from bringing operations and workers to other nations.
For FinTech, but especially for banks, too, this may something devoutly to be wished. “Passporting” to provide services into the EU is something that banks do, as do insurance firms and FinTech companies. It remains to be seen just what will happen to that structure (in the meantime, Belgium and London have constructed, earlier this month, a “FinTech bridge” between FinTech and traditional finance firms). But if the goal is to keep London as financial hub, collaboration would be likely to be a key pursuit, side trade agreements may be struck, and meanwhile FinTech growth could continue unfettered.