Countdown to Brexit
Rathbones remains well-prepared for all Brexit scenarios. We continue to monitor Brexit-related developments and their impact on investment markets very closely. Equally, in common with all major UK financial services businesses, we have, for several months, been planning for any implications Brexit could have for us as a company. Overall, we expect the impact of even a hard Brexit on Rathbones to be limited.
Rathbones is a UK business with no operations in other European countries except for Rathbone Funds Advisers acting as a tied agent to Carne Global Financial Service (Europe) which will remain unaffected by Brexit. We have no notable dependencies on goods, services or people from other European countries, and our clients are predominantly based in the UK. As negotiations draw towards a conclusion, it’s looking more likely that Brexit will have some implications for our European resident clients, but it is important to stress that we will be working with those directly affected clients to achieve a timely and acceptable outcome as soon as possible, and will keep you informed of developments as they happen. In the meantime, we will ensure that we continue to deliver our services to all clients as normal.
Brexit will not have any impact on how we hold client assets and the security of investments with Rathbones remains assured. We hold client investments through a combination of our own separate nominee companies (in the case of UK investments) and third-party custodians (in the case of non-UK investments). Our third-party custodians are global institutions ranking amongst the biggest banks in the world. We hold cash balances within client portfolios on our own balance sheet, which has over £3.1bn of total assets (as at 30 June 2020). Notwithstanding the fallout of Covid-19, we remained profitable for the six months ended 30 June 2020 and we continue to hold regulatory capital well in excess of the levels required by our regulators to guard against unexpected events.
Naturally, we remain very focused on the implications of Brexit for the investments we manage. You can keep up to date with our latest views on the investment implications of Brexit, here.
Please be assured that, in spite of the continued political uncertainty, we are making every effort to ensure that we maintain business as usual. If you would like to discuss the potential implications of Brexit for your portfolio, please do not hesitate to get in touch with your usual contact at Rathbones.