View more on these topics

‘A big test for value of advice’: What advisers make of EU fallout


Advisers say clients are holding their nerve following the vote to leave the EU but say the referendum will challenge firms to deliver on the value of advice and investment expertise.

In the wake of last night’s vote, advice firms say clients are not panicking as the wider market and policymakers work out the next steps for the UK’s relationship with the EU.

Investment Quorum chief executive Lee Robertson says: “We are long-term strategic investors, we are not tactical investors. The problems our clients faced yesterday they still face today in planning for retirement, putting their kids through school, passing money through generations. On a 30 or 40-year financial journey, this is just one more bump in the road.

“Our phones have been very quiet this morning. Clients are digesting it, there has been no real panic. Clients understand that we have been here before with 2008 and 2011 and it doesn’t feel like that. We have had a few [calls], particularly from the older clients who worry a bit more because they have less time to make up losses but we are positioned at the defensive end of our equity ranges. Generally, we are keep calm and carry on.”

He says all eyes are now on the Bank of England.

He says: “We need to watch what the Bank of England is going to do. It will be interesting to see if inflation starts to creep back in and that leads to rates rises. What we need now is strong and united political leadership and they should be putting party politics aside for the time being to concentrate on UK plc.”

Page Russell director Tim Page says: “All our clients have plans in place. But it all depends on what out actually means. If it is access to the single market like Norway then most people who voted Leave will be pretty annoyed and nothing much will change. If it’s the nuclear option of free trade then all bets are off and it will takes lots of time to work out where we are.

“The key issue is there is not capacity to deal with this. There are not enough people competent in negotiating trade deals. Who actually is going to do this? It will take a long time.

“The problem is we won’t know for months. So much isn’t going to happen because of the uncertainty and it won’t be resolved for longer than people think.”

Worldwide Financial Planning IFA Nick McBreen says: “Common sense has been thrown overboard. My clients are sensible people but I’m very conscious of hyperbole and media reaction to this.

“We are in unchartered terriority. Markets do not like uncertainty and change.

“Looking at the FTSE it’s not actually down that much and we’ve had volatility for two or three years so that’s not new.”

McBreen adds: “As an adviser we pay people like Richard Buxton and Mark Barnett to buy in expertise and this will sure as hell tell the difference between the good and bad managers.

“That’s what clients pay for – for the experts to have a view and strategy. This is really the value of advice. With the right funds and management house you have to have faith and trust in a sufficiently diversified strategy with tactical overlay. It’s a big test.”


Danby Bloch

Danby Bloch: Lessons from 30 years in tax planning

Financial advisers often need to plan for 30-year periods. Indeed, lives divide into roughly 30-year intervals: in the first 30 years, many people find they are either financially dependent or saving very little, then there is usually about 30 years’ worth of saving from their 30s to 60s, followed by about 30 years of retirement […]

‘You cannot outsource responsibility’: FCA sets out robo-advice regulation plans

The FCA does not intend to stipulate specific due diligence criteria when it comes to using robo or automated advice services. That was the message from FCA technical specialist Rory Percival, who told Money Marketing Interactive delegates the regulator is more interested in a “robust” end result. He said: “We often get questions about how […]

UK gilts: Shaken and stirred

Mike Riddell, fixed income portfolio manager at Allianz Global Investors, reviews the performance of the UK government bonds market post-Brexit and assesses its future prospects, as well as giving his outlook for global fixed income markets and yields movements. In addition, he provides a brief analysis of the impact of Brexit and the Bank of […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Advisers can really prove their worth here by calming down clients and showing their value. Lets see where the markets are on Nov 1st. Suspect they will have recovered by then if not next Friday

  2. I posted my thoughts here as the economic side of Brexit is NOT the risk our clients need to be aware of now.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm