View more on these topics

May’s Brexit deal defeated again: Industry heavyweights react

Last night, Theresa May suffered another blow in her attempts to get a Brexit deal through parliament. Leading investment, pensions and advice experts have weighed in with their reactions on the way forward amid  the uncertainty.

This is very worrying. Failure to agree a deal with Brexit just weeks away only adds to the uncertainty for our customers and the insurance industry.

It is vital that decisive action is taken to avoid a no-deal Brexit this week. If the only alternative to no deal is some form of short delay to Brexit, then delay we should.

Association of British Insurers director general Huw Evans

The rejection of May’s deal sends one certain message to markets: more uncertainty. Sterling had picked up a bit on the prospect of a breakthrough in Strasbourg, but lost ground during Westminster debate.

While the probabilities have shifted toward some form of a softer Brexit, the final destination remains uncertain and will continue to deter business investment. This also means more economic standstill so the Bank of England will need to hold off on raising rates.

State Street Global Advisors head of policy and research Elliot Hentov

It is extremely disappointing that after such long negotiations and a second meaningful vote, the Brexit uncertainty continues.

We are now merely weeks away from the Article 50 deadline, and it is critical that every effort is made to avoid a no-deal exit from the EU. This is by far the least desirable outcome for the millions of people who entrust us with their savings and for our industry. Since the Brexit referendum, British savers have taken nearly £19bn out of UK equity funds, which reflects broader concerns about the strength of the UK economy. A no-deal Brexit will only serve to further dent investors’ confidence in the UK economy, and every effort must be made to avoid it.

Given the continued uncertainty that today’s result brings, the industry has no option but to implement their long-established no-deal contingency plans.

Investment Association chief executive Chris Cummings

Yesterday’s defeat of the government’s revised Brexit bill left markets little moved with the pound back right in the middle of the already quite tight $1.30-1.33 trading range of the last few weeks. The defeat was not after all unexpected and more importantly the markets remain as bemused as everyone else as to where we are headed – a No-deal, a short or long extension to Brexit, a referendum, May’s resignation or a general election are all to varying degrees still all quite possible.

With all these options still on the table, sterling seems almost paralysed by the uncertainties. We have deliberately hedged our bets: we have a sizeable exposure to overseas equities which would benefit a fall in the pound on a No-Deal whilst retaining a tilt to mid-caps within our UK equity exposure which would benefit from any kind of deal.

Kingswood head of research Rupert Thompson

Recommended

1

Now: Pensions fee controversy escalates

Criticism of the way master trust provider Now: Pensions charges members has escalated with two letters published by MPs on the work and pensions select committee. In February, Now: Pensions director of policy Adrian Boulding wrote a letter where he rebuffed criticism from committee member and Labour MP Steve McCabe who alleged the way it […]

The Wells Street Journal: Bullsh*t bingo and an overwhelming choice

A weekly account of the curious goings-on in the world of financial services Introducing bullsh*t bingoFNZ-backed technology provider Advicefront has debuted a list of acronyms and words that advisers dislike, helped by the ever-amusing Alistair Cunningham of Wingate Financial Planning. Dubbed “bullsh*t bingo”, the list includes regulators and bodies including the FCA, Financial Ombudsman Service, […]

Platform costs

Quilter eyes higher-value clients with platform upgrade

Quilter has said that its new platform will help it win business from higher-net-worth clients by expanding the range of investments available. The advice and wealth management group formerly known as Old Mutual Wealth says that it is currently in the “soft launch phase” for a new platform. Assets should be migrated across around autumn, […]

British Steel transfer complaint details surface

The Pensions Ombudsman is finalising preliminary decisions on three lead cases that will determine how complaints about transfer values related to the British Steel Pension Scheme are handled. A response to a Freedom of Information Act request published yesterday sheds light on how the Ombudsman’s investigation into British Steel complaints is going. In February 2018 […]

Globe-Global-World-Map-700x450.jpg

Government bond outlook video 2018

RLAM’s Head of Government Bonds, Paul Rayner considers 2018 prospects across UK and international government bond markets. Watch the video here Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. I do wish people would stop referring to ‘The Government’

    We don’t have a government. They are not governing. What we have is a bunch of incompetent nincompoops.

  2. Totally agree but the opposition is no better, I have yet hear from a single person a positive comment regarding Parliament, as a body of MPs, they are an embarrassment and national disgrace. The place is riddled with petty personal point-scoring and political calculation!

  3. The biggest problem with communication is the illusion that it is happening
    – George Bernard Shaw

Leave a comment

Close

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

Email: customerservices@moneymarketing.com