Gina Miller, co-founder of fund manager SCM Direct and
outspoken critic of the U.K. governments approach to
Brexit, says investors should lower expectations for how much
access theyll have to Europes markets following
Many investors in London still arent being
realistic about the level of access theyll
have to clients in the regions economy after the U.K.
leaves the European Union in 2019, Miller said in an interview.
The European Economic Area, or E.E.A., consists of the 28 E.U.
member states plus Iceland, Liechtenstein and Norway.
Everyone is saying, we are going to be members of the
E.E.A., but how realistic is that? said Miller.
Being a member, but not being in the E.U., will mean we
will still have to incorporate all E.U. regulations without
E.U. representations and we would still have to make
considerable contributions to single market access.
The European Securities and Markets Authority is considering
charging countries outside the trading
bloc to regulate them, according to ESMA Chairman Steven
Maijoor, who said earlier this month that such payments would
help cover the costs of assessing risks that non-E.U. firms
pose to the European financial system. Liberal Democrat
treasury spokesperson Susan Kramer has expressed concern the
U.K. government isnt listening to what European
policymakers are saying on regulation.
It is like two conversations are taking place and one
is not listening to the other, she said. Everybody
is worried about the ability to access E.U. Quite a number of
British entities will be harmed by the loss of
Passporting is the term given to rules that allow fund
managers to offer their funds in E.U.
The European Fund & Asset Management Association estimated in a report this month that the
region had 22.8 trillion ($25.4 trillion) of assets under
management at the end of last year.
Firm are starting to consider how they will serve existing
clients and how they can manage costs post-Brexit, according to
Andrew Gray, the head of PwCs U.K.
regional financial-services practice.
A firm that does not have a legal entity within the
E.U. will need to create a legal entity, and it will need to
have that authorized by the appropriate legal authority to
conduct business, he said.
At the annual Finance Malta conference, the U.K.s former trade
envoy Jonathan Marland is expected to speak May 18 about the opportunities that
exist for cross-border financial services within the
Commonwealth, according to conference organizers. Marland, who
had served under former British Prime Minister David Cameron,
is now chairman of the Commonwealth Enterprise and Investment
Miller said that the U.K. government appears over-reliant on
The Commonwealth nations to bring about post-Brexit deals.
There is a naivety on free trade deals happening and a
reliance on The Commonwealth, which is a really interesting
one, she said. I was at a Commonwealth event not so
long ago and people were telling me that Britain
doesnt seem to understand that we now hold all the
A spokeswoman for Marland said he wasnt immediately
available for comment. A spokeswoman for the U.K. Department
for Exiting the European Union declined to comment. The
Department for International Trade did not immediately respond
to a request for comment.