Supreme Court ruling unlikely to affect UK sentiment
Sentiment towards UK assets is likely to be unchanged despite the UK Supreme Court ruling that Prime Minister Boris Johnson acted unlawfully when he suspended Parliament, according to DeVere.
The Supreme Court, led by Justice Lady Hale and unanimously agreed by 11 judges, said Johnson’s decision had been ‘unlawful’ as it had frustrated democracy. Parliament had been due to be suspended until 14 October, with the UK due to leave the European Union on 31 October.
As a result, Johnson would now have to re-open negotiations with the EU and try to secure a deal as the House of Commons had already rejected a no-deal exit.
But DeVere chief executive Nigel Green said the decision was unlikely to make investors reconsider their UK exposure.
“[The ruling] would suggest that the possibility of a hard Brexit- and all its perceived threats- has further reduced,” he said.
“However, the ruling will not deliver a major boost of optimism to the pound and UK financial assets because the Brexit timetable remains in place.
“The Brexit-fuelled political uncertainty deepens and this will temper any significant upside. Sterling and UK financial assets remain flat.”
He said he expected both international and domestic investors would continue to move assets away from the UK, with DeVere having seen a 35% increase in clients reducing their UK exposure.
AUTHOR
Laura Dew
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
