Eye on Round Table
Brexit & The Financial Environment
Business Eye’s Richard Buckley joined forces with Fairstone NI, the Lisburnbased independent financial advisory firm, to organise a Round Table Discussion on the potential impact of Brexit on the business and financial environment.
The Participants TM – From an insolvency perspective, we’re still seeing people dealing with legacy debt, often multijurisdictional. Brexit could bring a lot of legal complications and it might be a massive challenge. It could be hard to work with foreign creditors once Brexit kicks in, for example. And there are no provisions for how we might deal with other jurisdictions. So, if you have debts elsewhere, now is the time to deal with these.
Peter Savage, Business Principal, Fairstone Northern Ireland
Sean Larkin, Business Principal, Fairstone Northern Ireland
Jonathan Abbott, Director, Daly Park Chartered Accountants
JA – We have an office in the border area and a lot of our clients have business interests on both sides of that border. They also, possibly may have savings and investments on both sides too. People don’t like the uncertainty surrounding Brexit and there is a real need for information. JAO – Peter is right. The cost of goods will increase, and the pound will probably drop. I thought that, even after the referendum, that the property market might have dried up. But that just hasn’t happened. People are getting on with it, and they’re still making investment decisions.
Julie Ann Osborne, Partner, CMG Cunningham Dickey Solicitors
Thomas McKenna, Director, Keenan Corporate Finance
Michael Guilfoyle, independent Financial Adviser, Fairstone Northern Ireland
RB – From each of your perspectives, will Brexit affect the financial landscape and, if so, how?
SL – Of course it will affect savings and pensions. I’ve seen surveys in which most people expect their pension values to fall as a result of Brexit. But those who have savings and investments can all expect some volatility. Brexit might also bring about opportunities. For example, if sterling falls further, investments in some exporting companies will perform well. So, there will be an impact, but at this stage, it’s hard to be more precise and
we’ve always got to bear in mind that there will be a long implementation period after March of next year.
PS – The answer is yes. It’s the biggest social or financial development for many years. It will change the landscape. Where it might affect the young is in their ability to save because prices look likely to go up. In terms of older clients, it’s more about their return on investment and how they fund their retirements.
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MG – The word ‘volatility’ sums it all up, I think. But how volatile the markets are depends on the deal that is cobbled together. It could be short-term volatility, but it could last much longer than that. We always deal in time horizons. So shortterm volatility can be managed.
RB – What can individuals do to mitigate against the risks of Brexit? PS – We get asked that question a lot. And our advice is that as long as an investment portfolio is diversified and spread, that will help. We advise our clients on a long-term basis and we always tell them that we’re here to advise them in the face of all sorts of threats and potential threats. This won’t be the last one that we’ll have to navigate. SL – We’ve got to keep remembering that it hasn’t happened yet, and a lot could happen before it does happen. But stay calm, we’ve always got to expect