Ready for Brexit
On 25 November 2018 the UK Government and the EU announced that they had agreed a Withdrawal Agreement for the UK’s departure from the EU on 29 March 2019, subject to ratification by both sides. If ratified, this agreement provides for a transition period until 31 December 2020 to allow the future long-term relationship between the UK and the EU to be determined through further negotiation. However, on 15 January 2019 Parliament decided not to ratify the Withdrawal Agreement and it is currently unclear when the UK will leave the EU and on what basis. A number of alternative scenarios are possible, including the UK’s exit without an agreement on 29 March 2019.
Rathbones is well-prepared for all Brexit scenarios. We are a UK business with no operations in other EU countries, no material dependencies on goods, services or people from other EU countries and a predominantly UK client base. We continue to monitor Brexit-related developments closely but do not expect any material impact from Brexit on our business.
In particular Brexit will bring no changes to the basis or nature of the services we provide to the vast majority of our clients and investors who are based in the UK.
Investors in the Luxembourg SICAV funds managed by Rathbone Unit Trust Management will see some changes to the basis on which these funds are delivered. Such investors will receive a notice further explaining these changes in greater detail.
It is also possible that there may be some implications for our private clients based in other EEA countries depending on the exact nature of the services they receive and regulatory framework agreed in the transitional period or in the event of an exit from the EU without agreement. If you are a client resident in another EEA country, and it becomes clear that our services to you will be affected by these changes, we will contact you as soon as further information is available to us to inform you of any service changes and the options that are open to you.
Brexit will have no direct effect on private clients of Rathbone Investment Management International (‘RIMI’). This is because RIMI is based in Jersey, which is treated as a "third country" (i.e. non-EU member) for the purpose of financial services. This relationship will not change when the UK leaves the EU.
Client investments managed by Rathbones are held securely in a combination of our own separate nominee companies (in the case of UK investments) and our nominated third-party sub-custodians (in the case of non-UK investments). We are liaising with our sub-custodians to ensure that these arrangements will continue.
Naturally, we continue to devote considerable resources to the investment implications of Brexit for client portfolios and our range of funds in order to avoid any disruption to our business or potential detriment to clients. Clients wishing to discuss the potential implications of Brexit for their investments should contact their Investment Manager or other usual Rathbones contact.