{"id":54004,"date":"2016-07-05T02:12:00","date_gmt":"2016-07-05T00:12:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/opinion\/how-can-brexit-impact-hnwis\/"},"modified":"2016-07-05T02:12:00","modified_gmt":"2016-07-05T00:12:00","slug":"how-can-brexit-impact-hnwis","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/opinion\/how-can-brexit-impact-hnwis\/","title":{"rendered":"How can Brexit impact HNWIs?"},"content":{"rendered":"

Short View<\/strong> <\/em><\/p>\n

Many HNWIs are poorer post-Brexit<\/strong><\/p>\n

With the majority of HNWIs in the UK
\n(14.3%) owing their wealth to the financial
\nservices industry, the billions that have
\nbeen wiped off markets recently would
\nhave directly hurt the pockets of many
\nHNWIs. Moreover, the storm has not yet
\npassed for HNWIs with investments in
\ncertain macro funds which have revealed
\ndeep losses. Bloomberg data has shown
\nthat 15 of Britain\u2019s wealthiest individuals
\nlost $5.5bn in the immediate market
\nfallout following the announcement. <\/p>\n

Non-doms thrown into uncertainty<\/strong><\/p>\n

New rules on non-doms \u2013 the unique tax
\nstatus many foreign born HNWIs subscribe
\nto \u2013 were announced in the summer of
\n2015 and expected to be published
\nfollowing the referendum. Their delay,
\nhowever, will add to the uncertainty of UK
\nresident and non-UK domiciled individuals
\nin the run up to the new rules coming into
\nforce on 6 April 2017. <\/p>\n

Luxury spending may decline as luxury
\nassets flourish<\/strong><\/p>\n

This is recessionary behaviour: As 2008\u2019s
\ncredit crunch forced HNWIs to clamp
\ndown on their luxury spending, it also saw
\nan increase in the art, wine and precious
\nstone markets. Gold is already rising, but if
\nfinancial uncertainly looks set to stay,
\nmany investors will buy into such tax
\ndeductible assets as safe investment
\noptions.<\/p>\n

HNWIs in manufacturing will prosper<\/strong><\/p>\n

The manufacturing industry at-large, could
\nsee an upturn in its fortunes as a weaker
\nsterling helps UK exports. Billionaire Brexit
\nsupporters, Sir Anthony Bamford and
\nJames Dyson will lead the way for a
\ntemporary or prolonged boom for British
\nmanufacturing business owners,
\ndepending on the state of sterling.<\/p>\n

Central-Prime Real Estate could make a
\ncomeback<\/strong><\/p>\n

Again, a weaker sterling carries with it
\ncertain advantages, this time for centralprime
\nproperty markets \u2013 mostly the areas
\nof London around Mayfair, Knightsbridge
\nand Chelsea. Having seen prices plateau
\nrecently \u2013 partially in anticipation of the
\nreferendum \u2013 the same areas are now
\nlooking more attractive to HNWIs from
\noverseas as the sterling devalues against
\ntheir own currencies, notably the US
\ndollar. <\/p>\n

Long View<\/strong> <\/em><\/p>\n

Lighter regulation could benefit some
\nHNWIs<\/strong><\/p>\n

The bonus-cap may be one of the more
\nsymbolic pieces of regulation imposed on
\nthe City of London \u2013 and HNWIs \u2013 from
\nBrussels. However, other areas of finance
\nmany benefit from lighter regulation,
\nanticipated as Brussel\u2019s laws are replaced
\nwith Westminster\u2019s. One example is the
\nAlternative Investment Fund Managers
\nDirective (AIFM), which affects hedge
\nfunds, private equity, real estate and other
\nalternative investment fund managers.
\nAccording to Deloitte, most UK-based
\nasset managers think AIFM reduces the
\ncompetitiveness of the EU\u2019s alternative
\ninvestment funds industry, while Open
\nEurope thinks that it costs the UK \u00a31.3
\nbillion a year (based on 2014 estimates).
\nSMEs and other non-financial industries \u2013
\nfrom fisheries to farming \u2013 may also
\nbenefit from a lighter regulation, though
\nany immediate changes are unlikely. <\/p>\n

Changes in the Private Banking sector<\/strong><\/p>\n

Private banking \u2013 an industry combatting
\nover-regulation and fin-tech disruption \u2013
\ncould yet see better years. In the
\nimmediate future, private banking will
\ncome into its own as proper financial
\nplanning and risk management are
\nrequired to mitigate current market
\nvolatility. Long term, the UK\u2019s private
\nbanking industry may appeal to overseas
\nHNWIs as the UK sets its own rules on
\nlaws affecting HNWIs, such as antiavoidance
\ntax legislation. Should uncertainty in the Eurozone surpass that
\nwithin the UK, British banks may also
\nbenefit from capital flight. <\/p>\n

HNWIs will continue to come to London<\/strong><\/p>\n

Whatever the outcome of Britain\u2019s
\nnegotiation with the EU, it will not
\ndiminish London\u2019s lure among HNWIs (as
\nreported by Spears and WealthInsight last
\nmonth, it currently has more UHNWIs than
\nany other city in the world). London\u2019s
\nsuperior education standards and quality
\nof life will continue to be as much an
\nappeal to migrating HNWIs as its financial
\nprowess. The capital\u2019s strong judicial
\nsystem is already being used by foreign
\nbillionaires to settle disputes in their home
\ncountries, while its world class culture and
\neducation attracts many with families.
\nWith resident business leaders, London\u2019s
\nfinancial sector will maintain its place both
\nin UHNWI rankings and among financial
\ncapitals<\/p>\n","protected":false},"excerpt":{"rendered":"

As Brexit\u2019s uncertainty cascades to all aspects of the global economy, high net worth individuals (HNWIs) share with the nation a great deal of uncertainty, albeit of a slightly different variety.<\/p>\n","protected":false},"author":20,"featured_media":54002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1480],"tags":[1656,1436,2095,1651,1437],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/54004"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=54004"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/54004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/54002"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=54004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=54004"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=54004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}