Brexit and the Britstorm
Pride and Prejudice trumps Sense and Sensibility
What does it all mean for pensions and financial planning? The only short but honest answer to that is ‘no idea’. But that’s not very helpful so here’s our take; while it’s unlikely there will be any legislative changes in the short term, volatility in the markets, particularly commercial property investments, presents both opportunity and risk for investors. In the longer term, uncoupling our legislation from Brussels may allow a more flexible environment.
Interestingly, a reliable source tells me that the current dearth of commercial property is only going to get worse following the UKs exit of the EU. Many companies previously considering acquiring (whether through existing stock or via a build) commercial premises are putting this on indefinite hold. This is due to the uncertainty companies linked with Europe, be it through their staff and/or business, now have about their base of operations and/or any expansion plans. It is believed that this might end up having quite a significant impact and amongst other knock on effects, it is likely to push the prevailing high costs of acquisition and of construction even higher.
We’ve certainly already seen the effects of Brexit on property investments, not to mention on Sterling itself, but what next? Well, one thing you could rely on when we were in the EU was that any government of the day was going to have an annual fiddling about with pension legislation so it’s wise to assume that there certainly won’t be any less of that. Any changes, significant or otherwise, are unlikely to be introduced until next April and who knows, there might not be any and even if there is, they might be positive ones.
Come what may, we will be as vigilant as always to the pitfalls and opportunities and how to avoid the former and take advantage of the latter.
It just might be that one of the other medium to long term consequence of saying toodles to the EU is increased consolidation and vanillarisation of the Self Invested Pensions industry. Well, that can only be a good thing for us as it drives more people to our door as one of the last champions of all things SSASs and SIPPs should, could and will continue to be for as long as we’ve got a stake in the game.
So it’s business as usual here at PSG but we are more ready than ever to help advisers add real value to the service they provide their clients by offering industry leading solutions, opportunities and service. So whether we are in a brave new world or a cowardly old one, we can help businesses and their owners make the best of it.