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Article 50 – Find out what IFAs and other experts are thinking

Following our email yesterday with reactions from the City regarding the triggering of Article 50, we’ve received some interesting emails from advisers and other experts giving us their thoughts on how Brexit might affect them and their clients.

We’ve highlighted the top 6 below so you can see what your peers are thinking:

1. Interesting timing as just finished a client review/update meeting and I was asked the inevitable Brexit question “what do I think will happen and what does it mean for my investments?” As I reminded the client, I am not a fortune teller nor is it sensible to try and call the markets—nothing new there. However I did try to put some perspective on it to try and give a useful response to the client. I see it as two clearly distinct issues:
– Potential impact on the equity market in the UK
– Potential impact on UK PLC going forwards
I don’t believe they are one and the same thing at all and the key issue is how well the current Government can negotiate the exit. Whilst all that is going on the pound continues to erode in value and attractiveness globally and the kicker of thus in the short term is that the currency trade from exports form UK makes balance sheets and order books look great. The knock on effect is if course what we have seen since the June referendum with the UK index driving forwards and upwards and FTSE 100 breaking records. Only time will tell if a reasonable exit deal package can be struck with the Eurocrats, in the interim my mantra for clients is keep calm and carry on and keep faith with what looks like a very resilient equity market.

2. I personally feel the negative reaction has been brought on more by fear than actual evidence, as a mortgage broker I am hopeful that we will see a reduction in red tape…I particularly would like to see the removal of the European credit directive which has in my opinion stifled lending & put up costs to lenders brokers and customers with an actual benefit amount of zero. The main question on most clients lips is….interest rates….will they go crazy?….my view is not…..if anything they are more likely to stay lower for longer , not great news for savers but at the moment we need to give confidence to businesses that need to borrow to grow and will (in my opinion) be more likely to take on risk and debt if a prolonged period of low rates is likely.
Overall…..I think the future is BRIGHT….I am confident !!

3. If we are to believe that the balance of trade is in our favour, ie we buy more from the EU than they buy from us, then why the panic? With the EU having more to lose than we have then it is in their interest to make sure that the deal is right for both sides.

4. [We have]…long been a specialist in tax and financial planning for British Expats. Brexit is a big issue for our clients who live and work or have retired in Europe. Our offices in Brussels and Spain are obviously going to be most affected. The real question is affected by what. Brexit is merely a concept until we see the clauses of any deal. Only at that point can anyone opine on the likely effect and until then everything is surely speculation.

5. My clients are advisers and they operate mainly in the UK. It is too early for any effects to be felt, other than the build-up of uncertainty about how things are going to pan out. These things are made a little complicated in the UK with the thought of another Scottish referendum and the government of Northern Ireland. We live in interesting times, which ironically is an ancient Chinese curse “ may you live in interesting times.”

6. First time I have commented on this but it will not affect my clients one bit and we in UK have to be positive not all this negative press. You take the fact that more than 50% of the world’s population lives in the Far East and that is a growing market as the young population prospers and wants better quality goods etc.
If you feel strongly about this, let us know your thoughts on how Brexit is likely to affect you, your business and your clients by emailing sue.whitbread@ifamagazine.com