View more on these topics

‘The world’s first DIY recession’: Financial services industry digests Leave vote


Financial services experts have urged the Government to act rationally in the wake of the world’s first “DIY recession” after 52 per cent of voted to leave the EU.

The vote ends the UK’s 43-year membership of the EU and has seen the pound plummet to a 30-year low.

Old Mutual Global Investors chief executive Richard Buxton agrees with the view the UK will now enter a recession.

He says: “The biggest sadness of today is that it is reasonable to assume that the UK will quickly enter a period of economic recession, the key reason why we believed the outcome would be different from what has materialised today. It is, in effect, likely to be the first ever ‘DIY recession’, as George Osborne prophetically called it.”

Buxton adds: “It is hard not to feel disappointed at this result, which we know is likely to result in a difficult period for UK equity investors. As ever, we will do everything in our power to help our clients to navigate these market conditions; any investment decisions we take will be made with careful consideration.”

The Investment Association says: “The focus in the short-term will be on how markets respond, but it is important that we adopt a collective long-term focus on how the UK can preserve the pre-eminence of its financial services sector including our highly successful £5.5trn asset management industry – the second largest industry of its kind in the world.”

Chelsea Financial Services managing director Darius McDermott says the Bank of England’s reaction will be “crucial”.

He says: “Markets will now look to our politicians to see how they will deal with the situation – what plans they have to make this work. Also crucial will be the Bank of England’s response to huge moves in the pound. We don’t want knee-jerk reactions from parliament. What we actually need is for our leaders to be sensible, rational and show us some stability.”


Back from the dead: Is sub-prime about to make a comeback?

Mortgage experts believe the UK could be heading for a return to the kind of mortgage lending that triggered the financial crisis. Some argue we could see the comeback of sub-prime mortgages on such a scale that these loans could be packaged up and sold in the same way as we saw in the run-up […]


Can advisers overcome their doubts on workplace advice?

Advisers used to dealing with individuals may shy away from the corporate advice market because they think it is too difficult to enter. But auto-enrolment and the Financial Advice Market Review have highlighted the potential of the workplace as somewhere people can access financial services, bringing greater opportunities for advisers. With this in mind, SimplyBiz […]


Green blocked Pensions Regulator talks ahead of BHS sale

Sir Philip Green refused a request from the eventual buyer of failed retailer BHS to speak to the Pensions Regulator over concerns about its pension scheme, the Sunday Times reports. The firm entered administration earlier this month with a defined benefit pension deficit estimated at around half a billion pounds. Green sold BHS to Dominic […]


Guide: how to change your auto-enrolment support

As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.


News and expert analysis straight to your inbox

Sign up


    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