Economic analysts and financial advisors have an insider’s view of Brexit’s impacts. While many effects of the referendum have already set-in, no one knows exactly how the landmark legislation will settle out. Informed insiders have opinions, including hopes and fears about the country’s economic future. But until everything is finalised, questions remain. That’s why many professionals, growing tired of the uncertainty, are apparently eager to move things along.
A recent survey compiled answers from nearly 400 advisors, shedding light on the ways professional financial insiders are coming to terms with the change. Their answers not only illuminate concerns about Brexit’s impact on the profession, but also general effects that have and may come to fruition.
Potential Impacts of Leaving the EU
Among those polled in a Money Marketing survey about Brexit, 60 per cent favour remaining in the European Union. At the same time, nearly half of the survey respondents are not in favor of another referendum. Many, it seems, are looking forward to working through the particulars of the change and finally turning the page to the next chapter of UK economics.
In addition to stabilising their own positions within the new system, many of the surveyed advisors are eager to tamp-down negative effects of the move, including some of the following shared concerns.
Getting Behind the Change – Brexit has been and continues to be a divisive issue. But with UK growing ever closer to the formal separation, many of the financial advisers polled would like to see the government unify around the change. Taking a more positive stance and playing-up some of the opportunities brought about by Brexit can only help smooth-out some of the friction resulting from the referendum. Some of the poll participants believe it is Westminster’s duty to lead a positive charge.
Trade Opportunities – Identifying the positive potential of a post-Brexit society, advisors who took part in the poll want to see greater assurance for positive trade outcomes with other countries. A very visible issue in the Brexit debate, making trade deals with non-EU countries, is seen as an essential feature of post-Brexit success. At this point in the process advisors would like to feel more support for a welcoming international trade environment, as well as optimism from the business community.
Easing Regulation – Backing off regulation within the financial services industry could present opportunities, according to survey respondents. Not only would the environment spark a call for financial advice, hope some survey participants, but access to a greater number of post-Brexit wealth-building opportunities could also result. In addition to the benefits of continuing to consult online resources for information about payday loans and other financial products, advisors point to stock picking freedoms and other potentially positive effects of easing regulation. Outside the financial services sector, it is thought relaxing regulation could also help enhance productivity.
Since the Vote – As the negotiation process carries forward, advisors and politicians alike are displeased with perceived signals from the EU. The complex arrangements required for divorcing have hardened on both sides, making it more difficult to compromise on a workable deal that both the UK and EU can live with. Some analysts see the hard line as proof exiting is the right thing to do, but as each side strengthens its resolve, the ripple effect could impact the rights of companies and individuals on both sides.
Given the chance to share their feelings about Brexit, sentiment among UK financial advisors seems to mirror the public divide about whether or not leaving the EU is the proper move. While some experts believe their industry will suffer, resulting from post-Brexit instability, others have a more optimistic outlook, highlighting economic opportunities both within the financial services sector and outside it. To the extent consensus exists among the 400 advisors recently surveyed, most appear to share the desire to get on with it and positively embrace the imminent divorce.