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Brexit 91 of 100
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Contextual Spelling 4
Commonly Confused Words 3
Confused Words 1

Grammar 5
Wrong or Missing Prepositions 5

Punctuation 0 No errors

Sentence Structure 2
Misplaced Words or Phrases 2

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Passive Voice Misuse 12
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Brexit
Impact of Brexit on financial sector
About Brexit: What is happening and why?
Brexit is an abbreviation for â​​British Exit'. It is a short
way of saying that United Kingdom (UK) is exiting or
leaving European Union (EU). This term was taken 1
1
from the time when Greek left EU which was called Passive voice

Grexit at that time. David Cameron, the Prime

Minister of UK, declared a referendum that Britain
should remain in EU or not. This referendum will be 2
Passive voice
held 2 on June 23, 2016, in which all the people (British, Un d o

Irish, Commonwealth citizens 3 , UK residents living

abroad and members of the House of Lords and
Commonwealth citizens in Gibraltar) will vote and will
say â​​yes' or â​​no' to the question raised. The side that
gets more than half of the votes will win and that view 4
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will be considered 4 for 5 taking any decision. The
5
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wordings of the referendum is: "Should the United
Kingdom remain a member of the European Union or
leave the European Union?"
European Union is a partnership, economic and
political, between twenty-eight countries that fostered
the idea of economic cooperation after World War two
i.e. the countries in EU will trade together and not
conduct a war among themselves. So EU has
developed into a single market, uses a single currency
â​​euro' and follow its set of rules set by its own
Parliament. Britain decided to join EU in 1975.
The referendum is being held now because there was
pressure on the Prime Minister to do this, which was
resisted by him initially but he agreed later. The people
and politicians (UK Independence Party, many
conservative MPs) feel that EU has changed over the
past 40 years. Many countries have joined EU till then,
and they argue that the organization has extended its
6
control over more sides of daily lives. They also feel Passive voice
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that EU has held Britain back, and hence many rules

are imposed 6 on business. The country pays billions of
pounds as membership fees per year, and the return
they get is very less. One of the principles of EU is that
the member countries don't need a visa for visiting
and living in another country of EU, so the people and
politicians want to take back the control of its borders
fully.
Reasons for UK staying in EU:
David Cameron, the Labor Party, SNP, Lib Dems want
the UK to stay in the European Union. They feel that
EU membership gives the UK a bigger boost because it
becomes easier for UK to sell things to other countries 7
Passive voice
of EU. The economic growth is also enhanced because
the smooth flow of immigrants makes it easier to
employ young and talented people. It is feared by the
supports 7 that if UK leaves EU, its status would be
damaged in the world as countries don't leave EU
easily. The business will be negatively affected if UK
leaves EU because it will be very difficult to move
money, goods, and labor all over the world.
Impact of Brexit on unemployment and mitigation:
There are a lot of things that are still unclear as to
what will happen if UK exits EU. On of this is the
employment of people. If UK and EU mutually agree to 8
Passive voice
remain as a single market even after the exit, then the 9
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free movement of people will be allowed and no
10
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major impact will be seen 8 on 9 the employment of
people, the jobs will be retained 10, and lose to people
will be less. But if the UK government imposes
restrictions on work permits as they are against the
free movement of people and want to retain control 11
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over their borders, and other countries reciprocate to
12
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it in a similar manner, then members of UK will need
visas to work in other countries of EU and vice-versa.
Statistics says that Brexit will lead to loss 11 of jobs to 13
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2.2 million citizens of EU who are employed 12 in the

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UK and they could be forced to leave. The current jobs

of people will be affected, and they may not be given 13
visa for the country in which they are working. Hence,
14
they might lose their jobs. Possibly confused preposition

Similarly, the immigration will be affected. The UK or

other countries in EU might introduce a work permit
system in which only the skilled people may be
allowed to move from one country to another and
for 14 those sectors where demand is more and supply
of people is less. Britain already faces a shortage of
labor, and essential skills and Brexit will only
exasperate this situation.

Impact of Brexit on financial sector

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The financial sector of UK is world's largest financial
sector. Brexit will make the downgrading of UK's
financial sector inevitable. Around 250 foreign banks
exist in the financial sector of London, and they have
access to a single market under 15 the membership of
EU. Nearly ten percent of UK's GDP comes from this
sector; it contributes to the Treasury tax receipts for
about 12%. This sector is also the biggest exporter in
the world of wholesale financial services, it employs a 16
Squinting modifier
huge number of people from all over the world, and,
therefore, it contributes to secondary jobs.
If UK exits EU, the banking industry will lose its access
to the single market of EU. So the big and major banks
will relocate from the UK 16 to maintain their access to
the previous Euro markets. Some banks of US are
already in the process of making contingency plans to
move to Dublin in the case of Brexit. Brexit will
remove the status of UK as the largest financial center
in the financial system of Eurozone. The country will
lose a lot of revenue due to this. Also, important
privileges will be lost like the export of capital and
goods that are tariff-free in EU will be gone due to
Brexit.
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If Brexit happens, then Britain will be regarded as

â​​third country' by EU i.e. the country outside EU, and
it is a rule that if any country wants to access the EU
markets, then it first have to maintain the regulation
and supervision of financial sector equivalent to that
of European Union. So, Brexit will put the burden of
EU regulations on Britain if it would want to trade with
its biggest trading partner and the UK will don't have
the authority to say anything about those standards.
There is a right termed as â​​Passporting' in which any
company established in any country of European 17
Possibly confused loss and lose
Economic Area has the right to offer cross-border
services, and it can open branches in other economies
of EEA. This right greatly contributes to the appeal of
London as a global financial center as the size of the
financial market of EU is very large. Brexit will lead to
loss 17 of the right to a passport for the UK and there
will be fall in financial exports. 41% of UK exports of
financial services are accounted by EU (see appendix
for the distribution) and UK will suffer huge loss in
term of these.
A report on financial sector of Brexit concluded that
financial services of UK and the insurance companies
are exposed the most to Brexit because they run huge
trade surplus with European Union. UK will lose the
right to vote in decisions of EU and hence the barriers
to entry will be increased as per new regulations of EU
over which UK will have no control.
UK's financial services is an industry that is highly
regulated and majorly the regulation emanates from
Brussels. Red Tape will restrain UK if Brexit occurs.
After Brexit, if UK wishes to continue doing trade with
the remaining members of European Union, it will
have to comply with regulations of EU and UK will no
longer in the position to negotiate with EU, influence
or challenge those regulations.
Pros and cons of Brexit:
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Membership fee: UK can save costs annually as its

contribution to the budget of EU will decline. The
money it pays to EU is more than what benefits it gets
in return. But the financial advantages UK gets due to
EU membership in terms of free trade and inward
investments will be lost and it will outweigh the
upfront costs.
Trade: The member states of EU import and export
among themselves free of tariffs and more than 50%
exports of UK are driven to EU countries. Also, Britain 18
Possibly confused word: exits
has the right to modify the trading rules if it remains a 19
Unoriginal text: 8 words
member of EU. If UK leaves EU, the negotiation power www.coursehero.com/file/p4pf9e4/But-it-can-also-b…

of UK will be lost but at the same time, it can establish

its separate trade agreements with rest of the world
like with US (creating biggest free trade area of world).
Investment: The status of UK as the world's largest
financial center will be lost if it exits 18 EU. But it can
also be an opportunity for 19 the UK to reinvent itself as
an economy of Singapore-style.
20
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Immigration: Under the law of EU, any member
country cannot prevent any other member who
wishes to come and live in the country. Due to this,
there has been an increase in people coming to Britain
from other states in huge numbers especially from
Eastern and Southern Europe. The UK has lost the
control over its borders and problems with housing
and service provision has increased in the UK.
Jobs: Some studies have shown that Brexit will lead to
loss 20 of 3 million jobs. But if the UK can raise its trade 21
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and investment post-Brexit then new jobs could be
created for people in the UK.
Security: UK might be opening the doors to terrorist
attacks if it continues to be with EU. But if it remains
with EU, it can exchange criminal records with 22
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member countries and together they can work to 23
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counter the potential threats of terrorism.
Brexit will have an impact on the location, cost and
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liquidity of financial services in the UK if the

competitive position of London is undermined 21. The
big banks of Europe have important operations in
London, and it will be costly for them to relocate.
London has a dominant position in many areas of
product, and it is an international center of 22 financial
services. This position is threatened and can be
destroyed 23 if a huge amount of business of Europe
migrates due to Brexit. The risk of some important
business like derivatives may leave Europe altogether.
Paris, Frankfurt, Amsterdam and Dublin are the
beneficiary in EU. But they do not carry the talent of
replicating the advantages of the ecosystem of London
overnight that includes financial services and skilled
staff, market infrastructure, etc. There would be a loss
to business in Europe because of higher charges,
poorer products and low liquidity. The organizations 24
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in Europe will not find it comfortable and will be costly
for them to raise capital in London, which is one stop
shop currently. The balance of financial regulatory
debates will change in Europe due to Brexit. The UK
needs to follow a more interventionist approach and
risk-averse approach to regulating the market.
Conclusion:
The financial sector of UK is observed to be adversely
affected by Brexit. The advantages of leaving EU is
difficult to identify. The UK claims some newfound 25
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freedoms that will be achieved 24 due to Brexit and the
structure of its operations will improve vis-Ã -vis the
rest of the world. But this claim is colorless. Whatever
the negotiations UK will be able to do with EU for the
kind of arrangements that will shape the financial
services of UK (S&P, 2015). If UK wants to retain its
access to the single market of EU, it can become the
member of EEA. Switzerland is into a bilateral
agreement with EU which is also an option available to
the UK. There are alternate arrangements that can be
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adopted by the UK 25 to reduce the negative economic

implications. If the UK is not able to negotiate the
arrangements successfully, it will suffer adverse
outcomes that may not be even thinkable.