Brexit's FinTech compliance legacy

The UK's split with the EU has caused legislative headaches for some FinTech firms, but there are opportunities too.

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Much hot air was generated on either side of the Brexit debate, both before and after the 2016 referendum, right up to the official exit date last year. Around 80% of the CEOs and employees of FinTech firms voted "Remain" according to an Innovate Finance poll carried out soon after the referendum vote. This will have had an impact on the way a post-Brexit UK FinTech ecosystem will have been perceived and forecast in the run-up to 31st December 2020. But now we're five months into the new year; rhetoric and personal beliefs no longer matter. What counts is the reality.

For UK FinTech firms to compete within the EU, there are now more - and in some cases higher - hurdles to jump. Chief amongst these is the requirement to have an actual EU base of operations. Being based in London or other UK cities is no longer sufficient.

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