London could lose its status as a ‘fintech’ hub as a result of the UK’s vote to leave the EU, according to Emmanuel Lumineau, co-founder and CEO of BrickVest, an online real estate investment platform.
As a financial technology player based in the British capital, Lumineau suggested that, while fintech companies in London are currently regulated by the UK Financial Conduct Authority (FCA), when the UK exits the EU “firms will eventually need to find a new regulator on the continent in order to continue doing business across Europe”.
He suggested that BrickVest, and other fintech companies, may have to move to cities such as Paris, Frankfurt or Berlin, which offer an EU-regulated environment.
Lumineau said: “Ultimately, the UK’s exit from the EU will limit the growth potential of UK-based fintech companies.”
“These companies, as they will no longer be equipped to navigate the complex regulatory environment across borders, will be confined to doing business only in the UK. Eventually it will lead to London losing its fintech hub status.”
BrickVest has also suggested that real estate investors are likely to move their money out of the UK in the wake of Brexit, with Lumineau saying the firm will focus its investment in Europe and the US.
He said: “We expect to see some investors moving their money out of the UK into more stable environments. However, we believe that for opportunistic real estate investors, Brexit will create new buying opportunities in the UK as we expect to see volatility in the market.”
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