When the UK decided to leave the European Union on 23 June 2016, there was a common perception that it would have large repercussions for firms once the split was finalised.
While many braced for a hard blow to follow the agreement of a Brexit deal, most European financial advisers have reported a positive impact on their business, research by International Adviser found.
More than half (55%) of respondents said that they acquired more UK clients, compared with 45% who reported no change in the number of British customers.
Similarly, none of the advisers who took part to IA’s survey said they lost British expat clients.
Some 64% said that Brexit had a slight impact on their business, while 9% said it significantly impacted their business. Only 27% reported no repercussions because of the UK’s split from the EU.
Growth
The survey also found that, now that the Brexit uncertainties have – mainly – gone, most European advice firms are looking to expand their operations in the EU.
Around 55% told IA they intend to grow their presence in the EU, compared to 45% who are staying put for the time being.
Among the different ways to expand their footprint, some said they want to obtain additional licences, while others are looking to the M&A market to fulfil their growth aspirations.
But one respondent said expansion in other EU countries is going to be difficult going forward, as each local regulator interprets and applies European rules differently.
In terms of product growth, European financial advisers believe now that the UK is not part of the EU, they would like to have access to UK pension schemes or be able to work with firms or providers in the UK.
They also want to see a greater range of products for ESG; equity release; low-risk alternatives to bank deposits; savings; and critical illness.
