According to a report published in the Financial Times on Tuesday, credit ratings agency and wealth managers Credit Suisse has reportedly advised the ultra-high net worth individuals (UNHWI) that they could think about accelerating their plans to take their investments out of London before the country gets engulfed in the Brexit chaos and the ensuing uncertainty.
British prime minister Theresa May said on Monday that she wanted to hold voting on the proposed Brexit plan of her government in the week starting January 14.
On the other hand, another vote of no-confidence was tabled against May by Britain’s leader of the opposition, Jeremy Corbyn, claiming that it was not practical that the Parliament should wait for another month to vote on the proposed Brexit deal of the government.
Ultra-high net worth individuals are those who have a net worth of at least $30 million. Credit Suisse even set a date for the action by the UNHWI of exiting the UK market before May’s upcoming vote in Parliament in the third week of January to get her Brexit plan passed.
.Last week, May withdrew form a scheduled voting for her proposed Brexit deal where in U.K. lawmakers were set to voice their views on the terms of UK’s from the EU. May said that she had postponed the voting because she feared that she might lose it.
This decision by May has created a lot of uncertainty about how the proposed plan for Brexit is to be achieved and the markets and investors are weary of such uncertainties. In October this year, another report in the Financial Times had claimed that the multimillionare investors were exiting the UK market and shifting their investments to the Channel Islands and Switzerland and were themselves making preparations to migrate rather than staying back in the UK and risking the imposition of a “wealth tax” which would be likely if Labour leader Corbyn managed to claw into power.
But the suggestions of leaving the UK and shifting base and investments out of the country as the best option to combat the Brexit uncertainties is not accepted by everyone. “We certainly wouldn’t encourage clients to get their money out and run,” one banker, who asked not to be identified, reportedly told the Financial Times in the report. “Our role as wealth advisers is to calm some of the hysteria going on rather than add to it.”
Reacting to the news port, the wealth management bank Credit Suisse told the media that “Credit Suisse does not currently hold a house view that clients should move assets out of the UK due to Brexit or other political developments in the UK.”
(Adapted from CNBC.com)