The financial services industry must “unite and fight” against a no-deal Brexit that could erode clients’ rights and damage the financial sector, warns Nigel Green, deVere Group founder and chief executive.
This warning comes as the UK's International Trade Secretary, Liam Fox, has recommended that Britain should accept a ‘no-deal’ scenario, instead of requesting more negotiating time and MPs being told by the Association of British Insurers that it could be “illegal” to pay private pensions to British expats if the UK leaves the EU with no deal.
Additionlly, the City of London has claimed that Brexit will cost Britain up to 12,000 financial services jobs in the short-term, and potentially many more in the longer term.
Mr Green said: “It is an outrage that if the UK crashes out of the EU, and free movement of capital stops because there is no agreement in place, people could stop receiving their hard-earned retirement income, saved over many years, simply because they have chosen to live outside the UK, which they are perfectly entitled to do.
“As an industry we need to step up, lobby the policymakers, and ensure clients are secure on this issue, amongst others. We need politicians to guarantee their rights, choices and safeguards as a matter of urgency.
“Many will be seeking to safeguard their retirement funds by transferring them into a secure, regulated, English-speaking jurisdiction outside the UK.”
He continued: “The industry needs continuity and certainty. What it does not need is the chaos and the expense of a no-deal Brexit. A no-deal scenario will likely mean a reduction of the services and products that we are able to offer clients, as well as increased costs for businesses and, ultimately, the client. Therefore, we must actively engage with politicians to prevent this from happening.”
deVere Group is an independent advisers of specialist global financial solutions. It has a network of more than 70 offices across the world, over 80,000 clients and $12 billion under advisement.