London is the “loser” after Brexit, say investment professionals

London’s attractiveness as a financial centre is going to be weakened following the UK’s decision to leave the EU, according to a survey of investment professionals by the CFA Institute. The poll revealed that 82% of respondents viewed London as a “loser” following the vote, with Frankfurt and Dublin seen as likely beneficiaries. Half of the respondents also expect firms from their own local market to reduce their presence in the UK. Just 5% indicated that they thought firms from their local market might increase their presence in the UK. In terms of political fallout from Brexit, 59% of those polled believe that the UK could fragment due to Scottish independence. Further exits from the EU were also expected, with 48% seeing this as likely. However, the disintegration of NATO was seen as highly unlikely. “In the immediate aftermath of the Brexit referendum vote, we can see considerable variance over how long investment professionals expect market uncertainty to last, but that uncertainty will be with us for a while at least,” said Paul Smith, president and chief executive of the CFA Institute. The poll was carried out last month and surveyed 2043 investment professionals with over half coming from Europe. ©2016 funds europe

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