So many questions, but as yet there are very few answers. Nonetheless, Lane says that law firms are advising asset managers to assume a “worst case scenario” come 2019.
In its latest ‘Brexometer’ of institutional investor firms’ sentiment towards Brexit, State Street found that just under a third said they would likely reduce their operational or organisational presence in the UK as a direct result of the UK government triggering Article 50.
Unsurprisingly, more than three quarters of the 100 participants questioned expect Brexit to have an impact on their operating models.
As a side note, when asked which investment services the businesses would need great support with following Brexit, most chose regulatory reporting support (e.g. Solvency II and AIFMD).
This suggests that the likes of EFAMA and the FCA will need to be more vocal in backing firms during negotiations, and also perhaps that the real winners from Brexit will be the consultants.
The real impact of Brexit on financial services, one year on from the EU referendum, will be discussed in more detail in the forthcoming June edition of Portfolio Adviser.
