Brexit - What You Need to Know
On Thursday 23rd June, the EU referendum took place and the people of the United Kingdom voted to leave the European Union, with a result of 52% to 48%.
The Chamber has compiled the following FAQ and collected information from member companies, to provide members with an up-to-date information pool on the issue. If your company would like to contribute opinions and advice, please contact Janet Jiang at email@example.com.
Member Views on the Impact of Brexit
Global Implications of Brexit
"The country has been divided along, age, income and education grounds rather than the traditional party lines which will have far reaching effects on how domestic politics develops as well as the increasing anti-establishment sentiment that has a grow voice globally."
"An article focuses on geopolitical impacts, economic impacts, security impacts and wide ranging European implications of the Brexit vote. Opinion is given on the resurgence, globally, of nationalism, the increasing observance of anti-immigration sentiment and the potential negative impact the result may have on a number of pending UK trade deals. "
The UK may decide to use continuity legislation to avoid a legal vacuum so that EU rules relating to financial services continue to apply in the UK for the time being post-Brexit. Maintaining equivalent rules would assist the UK in establishing that it satisfies “equivalence” standards that may be applicable.
Herbert Smith Freehills
"It seems extremely unlikely that EEA insurers will be unable to access the UK insurance market post-exit."
Simmons & Simmons
"Brexit is anticipated to bring enormous challenges to Banking in the United Kingdom, especially with uncertainty surrounding the financial relationship between the UK and the EU in the picture of current regulations."
St James’s Place
"Volatility and uncertainty will remain however looking back on similar financial events such as the 2008 financial crisis indicate that markets will stabilise and investment opportunities remain and are necessary to ensure long-term financial security."
Clyde & Co.
"Brexit would have significant regulatory implications for insurance industry participants. In this note we examine these regulatory implications and consequences and comment on some associated risk management actions that industry participants could take."
Tax and Tariffs
"Tax is collected in the UK on the basis of domestic legislation, enacted by the UK Parliament. Therefore, the UK’s corporate tax code will most likely remain highly competitive and attractive for international businesses. "
"Tax issues that companies need to anticipate relate to customs and trade impacts on physical supply chains. Trade tariffs will depend on what deal is struck during the negotiations as well as a likelihood that Duty and VAT may also change. "
"It is expected that in the short term existing trade agreements and the mechanism for trade between UK and Europe will remain unchanged, at least for the negotiation period of 2 years from the point that Article 50 is invoked. "
"As a result of the EU referendum vote to leave the UK, immigration rules are likely to change in the future, however, for the time being the current thinking is that immigration rules will remain as today for the two-year period once Article 50 is invoked."
Clyde & Co
"EU national employees eligible for Permanent Residence should exercise those rights prior to the UK’s formal exit. This will ensure that they remain free of UK immigration control. "
"A recent Savills’ report argues that Brexit has led to a change in perceptions of world risk in the global real estate market, affecting different markets to different degrees."
DTZ/Cushman & Wakefield
"Chinese investors in the British property market may be buoyed by the opportunities stemming from a weaker pound against the rising RMB."
Jones Lang Lasalle
"The repercussions are being felt around the globe and we are likely to see a temporary slowdown in demand from Asian occupiers with operations in the UK. However, in the long term, once clarity emerges about the UK’s exit negotiations, we expect a resumption in confidence."
Impact on Chinese Businesses
"Although there will be inevitable short term economic risks and turbulence, Chinese investors continue to be optimistic."
"We suggest Chinese businesses avoid rash pronouncement, reassure stakeholders things are ‘business as usual’, consider whether your business strategy is still the right one, take advice and stay close to events."
Members who run a dedicated micro-site on Brexit
- 16 July, 2016: Prime Minister Theresa May meets with Scottish First Minister Nicola Sturgeon, to discuss Scotland and Brexit. The next day, Nicola announces a second Scottish independence referendum is likely next year.
- 14 July, 2016: After her only remaining leadership rival steps down, Theresa May is officially appointed as Prime Minister, becoming only the second female to hold the position since Margaret Thatcher. She appoints a cabinet with a careful mix of remain and leave campaigners and creates a new portfolio known as “Minister for Brexit”. She announces she will invoke Article 50 by the “start of next year”. Read more>>
After her only remaining leadership rival steps down, Theresa May is officially appointed as Prime Minister, becoming only the second female to hold the position since Margaret Thatcher. She appoints a cabinet with a careful mix of remain and leave campaigners and creates a new portfolio known as “Minister for Brexit”. She announces she will invoke Article 50 by the “start of next year”.
The Basic Frequently Asked Questions
Thanks for Members' Contribution to This Session
Brunswick Group, Clyde & Co Shanghai, Control Risks, Deloitte, DTZ/Cushman & Wakefield, Jones Lang LaSalle, JSM Mayer Brown, Herbert Smith Freehills, KPMG, St. James’s Place, Simmons & Simmons.