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From KB Associates, an offshore fund consulting firm.
Introduction
In one of the most important political events in recent European history, the UK voted on June 23rd 2016, in an advisory referendum, to leave the EU. This has created great uncertainty. In this article, we review the political considerations and analyse the potential impact on UK asset managers.
Political considerations
The main uncertainty with Brexit relates to the arrangement which will be negotiated when the UK ultimately leaves the EU. The other uncertainty following the referendum related to how long it will take before the UK transitions into a new arrangement. On October 2nd 2016, British Prime Minister Theresa May confirmed at the Conservative party’s annual conference that the UK will trigger article 50 by the end of March 2017 thereby starting the formal process of leaving the EU. Given the two year divorce process, this means that the UK looks set to leave the EU before the summer of 2019.
What will the UK’s negotiating position be?
The UK Government’s negotiating position is currently unclear, although it is likely to seek both control of EU immigration and continued access to the single market. However, it seems very unlikely that both of these goals can be fully achieved. The EU won’t want to grant the UK an attractive deal as it wishes to deter other countries from leaving. Certainly, those non-EU countries with full access to t...................... To view our full article Click here
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