The asset management industry will remain unchanged and be able to face any upcoming uncertainties deriving from the ‘leave’ vote, the investment trade body says.
The Investment Association says its members are prepared to face the expected market volatility.
The trade body said in a statement: “Today the UK remains a member of the EU and the rules and regulations governing asset management remain unchanged, and the protections that were in place for clients yesterday remain in place today.”
The trade body said it will now focus on how the UK can preserve the “pre-eminence of its financial services sector”.
It says: “How the UK’s role in the EU will change will become clearer over time, but there are likely to be challenges ahead and we look forward to helping the government and our industry to navigate these.
“Our objective remains to play a positive role within the UK economy as a source of funding for companies, a major contributor to export earnings and as a centre of investment excellence that serves both domestic and overseas clients successfully.”
PwC chairman and senior partner Ian Powell says the ‘leave’ vote will have “significant implications for businesses” but UK business will be able to face this critical time.
He says: “History has taught us that UK business is adaptable and innovative when confronted with new challenges and opportunities. There will be significant uncertainty over the coming months as the detailed political and legal issues are worked out, and business confidence may be impacted.”
In May, Bank of England governor Mark Carney and deputy governor Andrew Bailey already warned on the negative impact of the leave vote saying banks in the country were preparing for any shocks.
Today, Carney says the central bank will be able to provide £250bn extra funding to firms if necessary on top of more than £600bn liquid assets to give banks “the flexibility they need”.
British Bankers Association chief executive Anthony Browne says any consequences of the referendum result will take “some time” to resolve with any changes to banking to take place over “several years”.
He says: “A significant amount of contingency planning has already been undertaken and the industry is very well prepared, and have increased capital and liquidity. Banks will now assess what the result means for their customers and staff in the long term.
“It is now important that we have as orderly a transition as possible to minimise the impact on customers both in the UK and the rest of the EU, and to limit any effect on the economy”.