The outcome of a no-deal Brexit would be “disruptive and expensive”, the Personal Investment Management & Financial Advice Association (PIMFA) has warned.
The advice and wealth management trade body says that a no-deal Brexit could hurt the investment community and its clients.
“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,” it said in a statement.
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.
PIMFA has stated that a no-deal Brexit must be avoided, and that a broad-ranging and “well-founded UK/EU agreement based on principles of mutual recognition” should be in place by the end of a transition period. However, it believes walking away with no-deal is still a “distinct possibility”.
PIMFA deputy chief executive, John Barrass, said: “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.”
Last week the Financial Conduct Authority revealed it is preparing for all Brexit eventualities, including a ‘no-deal’ scenario, as reported by International Investment.