Advice and wealth management trade body Pimfa has warned that a no-deal Brexit could hurt the investment community and its clients.
Despite the approval of the Government’s Chequers and White Paper proposals, the trade body formed of the merger of Apfa and the WMA last year, believes walking away with no-deal is still a “distinct possibility”.
Pimfa argues that member firms including financial planners would face added disruption and expense without a deal, and that the current focus on “enhanced equivalence” rather than a “mutual recognition” regime will also not go far enough in dealing with retail investment sector clients.
It says: “The people who would ultimately pay for any increase in costs or reduction in investment possibilities would be the clients of our firms. These are often ordinary individuals and families who in many cases are voters.”
Pimfa deputy chief executive John Barrass adds: “Pimfa has repeatedly made it clear that an orderly, three-phase approach to Brexit is both essential and achievable. This necessitates securing consensus around a withdrawal agreement in phase one to include a transition period as the core of phase two in which the final agreement for phase three is negotiated and agreed.
“The aim is to secure a one-step Brexit at the point of implementing phase three, 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”.