UK Government Brexit withdrawal agreement provides ‘sensible period’ for UK firms
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UK Government Brexit withdrawal agreement provides ‘sensible period’ for UK firms 15 November 2018London Reporter: Jenna Lomax
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The UK Government’s draft Brexit withdrawal agreements provides a “sensible period” for firms to make necessary changes for operating from the UK as a third country, rather than as an EU member state.
According to Liz Field, CEO of Personal Investment Management & Financial Advice Association (PIMFA) given the significance of the UK’s financial services industry, “ensuring stability and maximising the prospects of protecting retail investors are key concerns for the future”.
“Very clearly, further detail is needed to ensure that the UK can continue to operate as one of the leading wealth management and financial advice centres in the world”, she said.
The government agreed on a withdrawal agreement and political declaration on the future relationship for Brexit yesterday (14 November), but has already been hit with criticism and concern, including form, with Secretary of State for Exiting the European Union, Dominic Raab, who resigned this morning (15 November).
David Lewis, senior director at FIS Global, explained that compared with one month ago, borrowing volume has decreased by 35 percent for the FTSE 100.
He added: “Over the last week we have seen a reduction of some 12 percent and Monday (12 November) to Tuesday (13 November) saw a 19 percent reduction, all suggesting that short sellers had been decreasing their positions as the possibility of a deal edged closer.”
“Today may show a different course as the government faces key resignations and a tough time in Parliament.”
Andy Scott, associate director at JCRA, the independent financial risk management consultancy, said sterling has fallen almost two percentage points against the euro and the US dollar “as markets once again face the heightened uncertainty of not just Brexit, but also the domestic political situation”.
Hogan Lovells Brexit Taskforce partner Rachel Kent, remarked: “The really good news from today’s announcement is that the financial industry will have a transitional period to give them additional, and much needed, time to adapt to new framework post-Brexit.”
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