The Leave outcome of the EU Referendum suggests the UK is very polarised. However, the major Funds centres in the UK voted overwhelmingly to Remain. Some back office services are carried out in Northern Ireland who had a Remain majority of circa 12%.
Overall London had a turnout of in excess of 80% with some 75% in Remain camp; Edinburgh had a turnout of 82% with 74% Remain; and Aberdeen and Glasgow with lower turnouts also had significant majorities in Remain1.
If Scotland obtains another Referendum to leave the UK union but remain in the EU alongside say, Northern Ireland would this be good news for the UK Funds industry who market their collective investment funds into Europe2.
In anticipation of a Leave outcome from the UK union UK funds could be re-domiciled to Scotland ahead of or after the Scottish Referendum and retain their cross border marketing passport.
Many UK based Funds groups have separate ranges of funds in the UK for our market and Luxembourg and/or Dublin domiciled funds for marketing into Europe. In this respect Switzerland has negotiated separate rights with the EU to enable their funds to be sold across the EU.
EU Referendum and Gibraltar
Gibraltar which is part of the EU had a Remain victory in excess of 90%. Perched on the southern tip of Spain, the Rock and its 32,000 residents view Britain’s EU referendum result with trepidation: their thriving economy, built around financial services and the port, is based on access to Europe’s single market – and Brexit could reignite a centuries-old sovereignty row with Spain3.
The writer is studying the outcome of the EU Referendum Vote for UK Funds industry and will publish further articles in the forthcoming weeks.
1Source The Times Saturday 25 June 2016 “How Britain voted”
2EU Undertaking for Collective Investment in Transferable Securities (UCITS) dealing with the pass porting of marketing of savings income products – equities and interest
3Source The Guardian