MYTH 3 - Financial Services - Swiss financial services have thrived outside the EU - This could be the model for the UK.
Some Euro sceptics look towards the Swiss financial services industry, which has thrived outside the EU, and believe this model could work for the UK. However, Switzerland's relationship with the EU is complex and could not be replicated easily.
Evolving legislation could push financial services activity back towards the continent if the UK were to exit the EU, resulting in a gradual loss of business and investment. Indeed, we are already seeing new legislation that makes it increasingly difficult to do business in Europe from a non European platform. Notably, some foreign banks that use the UK as a base for operating in Europe have suggested they would move to the continent if the UK leaves.
However, we believe this is highly unlikely to result in a rapid loss of business. Additionally, given London's history of financial innovation, supportive government policy and well established role as a centre of global finance, there is scope to improve the long term consequences.
If you would like to receive a copy of the white paper, 'If you leave me now', which explores the implications of Brexit for the UK economy and markets, and/or a copy of "Breaking up is hard to do" which explores the implications for investments and currency for investors, please contact us on +351 289 392484 or email us at info@privatefund.management.
Private Fund Management would like to thank Rathbone Investment Management of Mayfair London for their kind permission in allowing the reproduction of this "Brexit" article. In the following weeks, we will be publishing the "Five Myths" relating to the "Brexit" debate, leading up to the referendum.
Private Fund Management
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