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Begin New Search Topic Regulation Author Anastasia Nesvetailova

1. A Singapore on the Thames? Post-Brexit Deregulation in the UK

Author:
Anastasia Nesvetailova, Ronen Palan, Stefano Pagliari, John Grahl, Richard Murphy, Izabella Kaminska, and Thomas Christiansen
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
City Political Economy Research Centre (CITYPERC), University of London
Abstract:
The so-called 'Singapore on the Thames' scenarios for post-Brexit UK tend to envisage a country that has abandoned the red tape of EU regulations, likely adopted a unilateral free trade approach and introduced a low taxation regime for the corporate sector. Technically, it is possible to make Britain into a low corporate tax jurisdiction. However, while the abolition of corporation tax would create an entirely tax-free environment for foreign shareholders in UK companies, this measure would end up increasing taxes on UK privately owned businesses. In the financial sector post-Brexit, the deregulated fintech industry is likely to evolve along the historical path of the unregulated Eurodollar markets, creating additional risks for financial stability, transparency and the reputation of the UK. In reality, two sets of political-economic factors will influence the UK's economic strategy post-Brexit: domestic alliances and the international policy context.
Topic:
Regulation, Brexit, and Deregulation
Political Geography:
United Kingdom and Europe

2. The Governance of the Black Holes of the World Economy: Shadow Banking and Offshore Finance

Author:
Ronen Palan and Anastasia Nesvetailova
Publication Date:
02-2013
Content Type:
Working Paper
Institution:
City Political Economy Research Centre (CITYPERC), University of London
Abstract:
This paper focuses on regulatory challenges posed by the two interconnected structures of the global financial system – the economy of tax havens (or offshore financial centres), and the shadow banking system. The financial crisis of 2007-09 has revealed that tax havens structures and shadow banking entities play a central role in the practise of financial institutions reliant on financial innovation. Thriving on complexity, opaque networks and driven by arbitrage, the two phenomena pose tremendous challenges to national and international regulators aiming to restore the financial cycle in the recessionary environment. In this paper, we analyse ‘the state of play’ and the current plans for the governance of tax havens, offshore finance and the shadow banking industry. We find that although offshore financial centres and shadow banking are outside the scope of academic economics, they have attracted a lot of attention on the part of financial researchers and regulators. Along with other macro-prudential and system risk concerns, the regulation, or governance of these ‘black holes’ of the global economy is increasingly assuming a central place on the agenda of financial regulators. In what follows, we explore the reasons behind this development.
Topic:
Governance, Regulation, Economy, Shadow Banking, and Offshore Finance
Political Geography:
Global Focus