Ongoing Brexit Uncertainty Ignites Fears of a Hard Exit

With Brexit negotiations have resumed in the past few weeks, fears of a ‘hard exit’ have ignited.  A ‘hard’ Brexit is the option favoured by those strongly supporting Brexit. Likely resulting in the UK giving up full access to the single market and significantly tightening immigration.

This sentiment has been echoed in the investment sector as UK assets are already being priced as if negotiations have ended this way. Global investment groups are insulating themselves from a hard Brexit.  International managers are creating plans in case the current ‘delegation’ rules are changed, which would prevent access to the European Union from London.  This may result in a drain of jobs and operations from London to European cities such as Frankfurt, Dublin and Luxembourg.

 Baillie Gifford, the Ranfurly Superannuation Schemes underlying investment manager is already preparing for a hard exit, so is getting ready for 31 March whichever may is may go. We are pleased that Gifford is being proactive and not leaving it to chance.

 This ongoing business and political uncertainty could have major repercussions for defined benefit (DB) and Contribution (DC) contribution schemes, as business and economic confidence wanes in the UK; stock markets fluctuate and interest rates are adjusted. Potentially creating shortfalls and loss of a decrease in pension values.

If you are worried about your UK pension or are considering transferring your pension, Ranfurly Strategic offer professional advice and assistance through the transfer process. Ranfurly Strategic offer a listed Superannuation Scheme, The Ranfurly Scheme is listed on the UK Government Recognised Pension Schemes List.

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