The Impact of Brexit on the UK

Running head: RESEARCH PROPOSAL
Research proposal on ' The Impact of Brexit on the UK Financial Industry’
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RESEARCH PROPOSAL
1.0 Introduction
Brexit has been a historic event for both the UK and the European Union (EU) as it
changes the future of the UK and the EU forever. On June 23, 2016, around 52% of people (17.4
million) of the UK voted for Brexit in the referendum and after 3 years, under the leadership of
Boris Johnson (BBC News 2020), the official exit of Britain from the EU occurred in January 31,
2020. However, there is transition period till December 31, 2020, during which Britain will
follow the rules and trading relationships of the EU (James and Quaglia 2019). Brexit is going to
have a highly significant impact on all sectors and all the aspects of the economy of Britain.
Financial industry is one such sector of the economy that controls the monetary system and
money circulation in the economy to keep it running in a manner that achieves growth and
development, and a major economic event like UK exiting the EU will have a deep impact on the
financial industry (Howarth and Quaglia 2017). The banks and other types of financial
institutions that are operating within, from and into the UK are expected to face market volatility
and various challenges with a prolonged uncertainty and the important details are expected to be
settled only towards the very end of the negotiations (Deloitte 2017).
Brexit will make the UK lose access of the single market and customs union of the EU
along with other trade and tariff benefits (Clarke et al. 2017). However, as the negotiation deals
are still going on, the effect of Brexit on the British financial industry is ambiguous. Hence, this
study will explore into the potential impact of Brexit on the British financial industry and based
on the findings, some feasible policy measures will be suggested for the financial sector to deal
with the Brexit effects.

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RESEARCH PROPOSAL
2.0 Aims/ Objectives/ Research Question/s
The aim of this research study is to explore the effect of Brexit on the financial sector of
the UK and to suggest options for utilizing the opportunities and mitigating the negative impacts
for long term benefit of the economy.
Research objectives:
 To investigate the effects of Brexit on the financial sector of Britain
 To examine the impact of Brexit on the trade and its influence on the financial industry
 To provide recommendations to the finance sector on utilizing opportunities and
overcoming challenges arising due to Brexit
Research questions:
1) What are the effects of Brexit on the finance sector of the UK?
2) How Brexit might affect the trade and trading relationship of the UK as it will lose access
to the single market and customs union of the EU and consequently affect the finical
industry of Britain?
3) What measures can be taken by the British financial institutions to overcome the
challenges occurring from Brexit and achieve growth by efficiently utilizing the
opportunities?
3.0 Literature Review
Brexit has significant implications on all the economic sectors of the UK, however, the
magnitude of effects are different for different sectors, which in turn has implications for the
financial sector. Ramiah, Pham and Moosa (2017) examined sectoral effects of Brexit through