Views on improving the integrity of global capital markets
28 June 2017

Assessing the Implications of Brexit: What Investment Professionals Need to Know

Posted In: Market Structure

There are fewer more important or pressing issues for the financial services industry in Europe than “Brexit,” the now commonplace term referring to the exit of the United Kingdom from the European Union. To inform investment professionals about Brexit and the issues at stake for the investment management industry, CFA Institute recently published Brexit: What It Means for Investment Management. This guide for investment professionals explores the political and regulatory context surrounding Brexit and considers the implications for the investment management industry.

Current Status of Brexit

On 19 June — almost one year since the UK referendum on EU membership — David Davis, the UK’s Brexit secretary, met with Michel Barnier, the EU’s chief Brexit negotiator, to begin formal negotiations regarding the UK’s departure from the EU. In the Brexit guide, you can find a listing of the key political figures involved in the negotiations.

As expected, the first phase of the negotiations will focus on settling Britain’s financial obligations to the EU and the rights of EU and British citizens residing in each other’s jurisdictions. After this first phase is completed, which is expected by December 2017, the negotiations will move on to discuss the complex issues of trade and Britain’s future relationship with the EU. Again, the Brexit guide offers possible scenarios for the way forward.

Role of CFA Institute

In this video, Gary Baker, CFA, managing director for EMEA at CFA Institute, highlights the key findings in our Brexit guide and explains the role of CFA Institute in the debate.

With the negotiations underway, CFA Institute is going to be closely monitoring developments from our offices in London and Brussels. It is vital that the legal and regulatory consequences of Brexit do not hurt the ability of investment firms to serve the best interests of clients. Irrespective of politics, upholding the interests of investors needs to be a core objective for the negotiations surrounding financial services.

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About the Author(s)
Rhodri Preece, CFA

Rhodri Preece, CFA, is Senior Head of Industry Research for CFA Institute. He is responsible for building and maintaining the global research function at CFA Institute, including leading the planning, coordination, and creation of research content across CFA Institute research platforms, which include the Future of Finance, the CFA Institute Research Foundation, the Financial Analysts Journal, and the Enterprising Investor blog. Preece formerly served as head of capital markets policy EMEA at CFA Institute, where he was responsible for leading capital markets policy activities in the Europe, Middle East, and Africa region. Preece is a former member (2014-2018) of the Group of Economic Advisers of the European Securities and Markets Authority (ESMA) Committee on Economic and Markets Analysis. Prior to joining CFA Institute, Preece was a manager at PricewaterhouseCoopers LLP where he specialized in investment funds.

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