United Kingdom: Punter Southall Releases Brexit Watch

Voters in the United Kingdom opted for the withdrawal of the UK from the European Union this past June in the historic EU Referendum. Leaving the European Union is not, however, merely a matter of putting it to a simple vote and finding the nearest exit. It is a much more complicated and negotiation-rich process that has never been done before.

Leaving the EU

In order to leave the EU, the United Kingdom will need to invoke Article 50 of the Lisbon Treaty. Article 50 provides a procedure for a member state to voluntarily withdraw from the EU. Once invoked, the UK will have 2 years to complete negotiations and cease to be a member of the EU. If the UK invokes Article 50, it will be the first time that the provision has been used for the withdrawal of a country from the Union.

Although the EU Referendum vote from June was in favor of withdrawal, it was not legally binding. This means that the UK is not legally required to leave the EU. While many in power are committed to following the will of the people, others are calling for a re-vote. Regardless of what happens, the UK will remain a member of the EU until the invocation of Article 50, and will therefore be required to abide by all of the same laws as any other EU member state.

Since Article 50 has never been used before, there is also debate about who is legally able to make the invocation. Some say that a parliamentary vote is absolutely needed to make such an invocation, while others claim that the prime minister can make the invocation without parliament.

Period of Uncertainty

The looming invocation of Article 50 has created a period of uncertainity in the UK. Since negotiations for withdrawal will have to be agreed upon by the remaining 27 countries in the EU, no one can provide definitive answers to the difficult questions regarding the ramifications of the Brexit on the UK and Europe in the months and years to come.

Brexit Watch July 2016

In answer to this period of uncertainity, Asinta’s partner in the UK, Punter Southall Health & Protection, has recently launched Brexit Watch, a compilation of views and latest insights regarding the Brexit from across the Punter Southall Group. The first edition was released in July, and future editions will be published as further details emerge and the negotiations for withdrawal develop.

Topics covered in the July 2016 edition of Brexit Watch include:

  • A summary of the Brexit thus far
  • The potential effects of the Brexit on pension schemes
  • Brexit from the perspective of an investment manager
  • The Pensions Regulator highlights covenant implications of Brexit
  • A DC perspective on the Brexit three weeks after the vote
  • An update on UK property funds since the vote

You can view the full PDF with links to all of the above articles here.

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