Brexit negotiators have started to acknowledge the plight of ordinary advice clients but there are still no practical solutions on the table, Pimfa’s John Barrass has argued.
The deputy chief executive of the Personal Investment Management and Financial Advice Association said firms are concerned there is no detail on how advisers will be able to continue to access cross border clients after Brexit or how to ensure the best interests of those clients will be served.
“Our concerns relate among other things to our work on how people think about their long-term future planning,” he told International Adviser.
“Brexit negotiations haven’t taken into account how ordinary private investors will be affected, when it should be prominent.
“The loss of passporting rights means access to clients will be lost, but there is nothing proposed to replace them, although there are options.
“Firms will need to think about setting up shop in Europe but what we need is more detail and we have made this clear to the authorities.
“There has been a lot of talk of mutual recognition, reciprocity and equality but nothing about the retail investing client and how Brexit will affect their everyday lives.
“Passporting could continue under the Norway model but it is difficult to see that happening. It is not for Pimfa to tell government what to do but we need to make them aware of the principles and issues at stake.”
Assume the worst
Barrass said Pimfa was working on a variety of models for retail business in different Brexit scenarios but he said the advice was now to “assume the worst”.
“It does not at present look as though a deal is on offer that would help the personal investment management and adviser profession and their clients in other EU member states; so all deals are a no deal for this sector
“There are massive questions, which remain to be answered,” he added. “Brexit is going to have to get a lot grittier and more detailed.”
