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Comment from Emmanuel Lumineau, the CEO of BrickVest
Fintech
Without doubt the UK is now a less attractive option for fintech investment platforms who want to operate across Europe. Platforms such as Brickvest are typically regulated by the FCA whose framework allows us, and companies like ours, to target investors across Europe. Brexit now means firms will eventually need to find a new regulator on the continent in order to continue doing business across Europe. Cities such as Paris, Berlin or Frankfurt can offer this. Consequently, BrickVest may have to shift some of our business and team abroad. Paris and Berlin are established fintech hubs, so it would be logical for us to open an office there, while maintaining a London office to support investment activity both locally and internationally.
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.
Real Estate Investment
We have already seen huge market volatility for UK listed businesses involved in real estate development. There certainly will be further uncertainty in the UK property market as a result of Brexit. BrickVest offers real estate investment opportunities globally and in the short term we plan to focus more on opportunities on the continent, especially in Germany, France, the Netherlands, and the U.S. 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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