PIMFA warns of the consequences of a no-deal Brexit
24 August 2018 London
Image: Shutterstock
The Personal Investment Management & Financial Advice Association (PIMFA) has raised concerns about the potential impacts of a ‘no-deal’ Brexit and how it will affect private investors and PIMFA’s member firms.
PIMFA stated a no-deal situation at the end of March 2019 “remains a distinct possibility in the light of continuing differences and numerous unresolved issues”.
For PIMFA members a no-deal outcome would be “disruptive and expensive”, the association stated. It added: “The people who would ultimately pay for any increase in costs or reduction in investment possibilities would be the clients of our firms.”
“In order to avoid this consequence for ordinary citizens, PIMFA has consistently argued that a no-deal Brexit must be avoided and that a broad-ranging and well-founded UK/EU agreement based on the principles of mutual recognition should be in place by the end of a transition period.”
The association said it is “vital the Withdrawal Agreement is not jeopardised”, as this would adversely affect employment, growth, costs, tax revenues and investment, leaving little benefit to UK consumers or firms.
PIMFA said “[We call] upon the Government, EU member states, and the European Commission and Parliament, to ensure that a proper phase 2 with a minimum transition period—as enshrined in the March 2018 version of the draft Withdrawal Agreement—is retained and not sacrificed in negotiations on the principles of the phase 3 agreement.”
John Barrass, deputy CEO of PIMFA, said: “PIMFA has repeatedly made it clear that an orderly, 3-phase approach to Brexit is both essential and achievable. This necessitates securing consensus around a Withdrawal Agreement in phase 1 to include a transition period as the core of phase 2 in which the final agreement for phase 3 is negotiated and agreed.”
He concluded: “The aim is to secure a one-step Brexit at the point of implementing phase 3, which firms can be aware of and plan for well ahead of time. This would minimise disruption and the costs of changing to business patterns suitable for a non-EU state”.
PIMFA stated a no-deal situation at the end of March 2019 “remains a distinct possibility in the light of continuing differences and numerous unresolved issues”.
For PIMFA members a no-deal outcome would be “disruptive and expensive”, the association stated. It added: “The people who would ultimately pay for any increase in costs or reduction in investment possibilities would be the clients of our firms.”
“In order to avoid this consequence for ordinary citizens, PIMFA has consistently argued that a no-deal Brexit must be avoided and that a broad-ranging and well-founded UK/EU agreement based on the principles of mutual recognition should be in place by the end of a transition period.”
The association said it is “vital the Withdrawal Agreement is not jeopardised”, as this would adversely affect employment, growth, costs, tax revenues and investment, leaving little benefit to UK consumers or firms.
PIMFA said “[We call] upon the Government, EU member states, and the European Commission and Parliament, to ensure that a proper phase 2 with a minimum transition period—as enshrined in the March 2018 version of the draft Withdrawal Agreement—is retained and not sacrificed in negotiations on the principles of the phase 3 agreement.”
John Barrass, deputy CEO of PIMFA, said: “PIMFA has repeatedly made it clear that an orderly, 3-phase approach to Brexit is both essential and achievable. This necessitates securing consensus around a Withdrawal Agreement in phase 1 to include a transition period as the core of phase 2 in which the final agreement for phase 3 is negotiated and agreed.”
He concluded: “The aim is to secure a one-step Brexit at the point of implementing phase 3, which firms can be aware of and plan for well ahead of time. This would minimise disruption and the costs of changing to business patterns suitable for a non-EU state”.
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