Three years after the referendum, Prime Minister Theresa May has decided to reach out to opposition leader Jeremy Corbyn. The “constructive” talks on Wednesday afternoon, meant to end the deadlock over Brexit, are seen as a welcoming sign by UK and global business, according to CEO Nigel Green, as both sides were showing flexibility.
“Finally it appears that some cross-party leadership is being shown in an effort to end the impasse. This must be and will be championed by businesses in the UK and those around the world that trade with Britain. It is a national disgrace that nine days to go until the fifth largest economy in the world is supposed to be leaving the world’s largest trading bloc and no-one still knows what’s going to happen. It must now be hoped that a consensus can be found, giving the roadmap more clarity for business.”
“Should this happen, the pound and UK assets can be expected to rally. The UK economy will benefit from a likely boost as household spending and investment that had been on the sidelines is unleashed. Whilst this is not the Brexit some people want, it is now essential to foster unity and build back momentum in the economy to ensure long-term, sustainable economic growth”, said deVere Group’s CEO.
“However, simultaneously, there are genuine concerns in business that Mrs May has also increased the possibility of a general election by proposing a cross-party Brexit deal, and this would have a negative impact on the pound and UK assets. All the continuing uncertainty makes it essential for those who are serious about safeguarding, creating and growing their wealth to ensure that their portfolios are properly diversified. Diversification is the investor’s best weapon to mitigate risk and capitalise on the opportunities as they arise”, he concluded.
The House of Commons has voted in favor of legislation which forces the UK government to request another extension to the Brexit process. EU members viewed rejection of May’s deal in negative light and retaliated stating that any request from UK to extend article 50 deadline will only be granted if proper justification for request is provided by UK. EU has already begun preparations for no-deal Brexit scenario while PM May’s intentional delay tactics has left UK without any time to prepare for disorderly Brexit.
In the meantime, the UK FCA has published its final instruments and guidance that will apply in the event the UK leaves the EU without a deal or an implementation period. Changes relate to These changes relate to UK managers of EEA UCITS funds; the application of the Client Assets sourcebook (CASS) to activities carried on from an EEA branch, and the distance marketing provisions.