New Economic Landscape Chat

Just received an inbox suggesting " they know who I'm talking about" in relation to the fantasty stuff. I've started to reform already. In the past I would have named them and given them any option to ( iron out ) the differences, but a calm adopting the philosophies of Bentley must be restored and is the way to go. I know the chap is seething but I'll mention it no more.

 

Why even bother mentioning in the first place then?

 

Because when your asked, why the continued sniping by an individual it only makes sense to explain. Now a line can be drawn.

 

thought of the day...

 

Anyone else entered Spain recently?? Just that at Alicante I had to push passport scan thingy and fingerprint recognition!!!! BREXIT ? Just us Btits ?
Crap system, most bods couldnt get it to work and let us amble in
Think it is aimed at non EU peeps

 

So two years on and, as predicted, a new narrative has emerged. Brexit now has 'hard' and 'soft' variants. It looks like, with the the clock ticking, that we are entering into the critical period. Nevertheless, the battle within the Conservative Party rages. My take on the recent resignations is that they are part of a the hard line brexiters strategy. I'm waiting for a few more, maybe Liam Fox etc. I'm also wondering whether Gove, Leadsom etc are remaining as moles. The last shove from the hard liners is likely to come if the EU push back on free movement or the customs plan arguing it looks like the UK having cake and eating it. If this is the case I expect a strong call for the UK government to withdraw from discussions and exist with no deal. This is the time they will call for a vote of no confidence in TM. Still, IMO,a way to go in this.

B

 

I'm not surprised they are calling for an early recess - shameful! Instead of extending MPs holidays they should cancel them until they've arrived at an acceptable solution. I can't see how May can survive this. I'm told remainer ministers have threatened resignation if more concessions are made to Brexit hardliners. More exciting than the World Cup.

B

 

Incredible. They are paid £77k plus expenses and get 11 weeks off during the summer recess. Some spend time focussing on their constituency, but there's no obligation to do so. They can hold up to 5 jobs, so some are clearly less dedicated than others.

https://www.parliament.uk/about/mps-and-lords/members/pay-mps/

By the looks of it, the first year or so is hard (as it is with any job) whilst the MP is getting to grips with it, but judging by my MP, who's been in the role for over 20 years, he seems to have got a good work/life balance.

As far as economics go, businesses run the country.

 

Four out of five MPs are in relatively safe seats so can pretty much do what they want and most do. Civil Servants enjoy the recess period. It allows them to get on running the country without the shenanigans of party politics.

B

 

Looks like we are entering the endgame. Can May push through her plan? Looks unlikely but there is a lot of posturing going on. I am in no doubt that by presenting this now with little time to steer a new course she maximising the pressure on moderate MPs. Ironically, it looks to me that the only way to achieve a 'hard Brexit' is via a second referendum as there is no way MPs will vote for it! It rather looks to me like a 'soft Brexit' or remain. In terms of my portfolio I'm looking for a steep fall in SPs after the Commons rejects the proposed deal. Maybe May will resign or call a GE or pressure will build for new referendum. So after a period of uncertainty regardless of the outcome, stocks I hope will significantly recover.

B

 

FCA clears up post-Brexit EU funds compensation confusion
By Loukia Gyftopoulou 12 Jan, 2021


Investors in EU-based funds managed from the UK will still be able to claim against the Financial Services Compensation Scheme (FSCS) post-Brexit if something goes wrong, the Financial Conduct Authority (FCA) has clarified.

A spokesperson for the FCA was unable to offer guidelines on how this will work in practice, however, and what types of investor or fund would have recourse to the UK’s compensation scheme though.

Based on information available at the time, Funds Insider’s sister title Wealth Manager reported in December that investors in UK-managed funds distributed via Europe would no longer be covered by the FSCS’ guarantee to cover losses caused by malfeasance up to £85,000.

This would have included popular mandates such as Lindsell Train Global Equity and the Polar Capital Global Technology funds, which although managed in the UK are registered in EU countries.

Asked by Wealth Manager last year whether investors in these funds will have recourse to the FSCS, the FCA and Treasury had declined to comment.

But in an update on its website, the FCA has now said investors in retail funds operated or managed by UK firms from the UK will still be covered by FSCS and ombudsman services.

‘Investors in retail funds operated/managed by UK firms and managed from the UK, are still covered by the FSCS and the ombudsman service for complaints or claims relating to the management of the fund, provided the investor is eligible under the terms of those schemes,’ the FCA website said.

‘Investors in retail funds operated/managed by EEA firms do not have access to FSCS and the ombudsman service for claims or complaints relating to the management of the fund unless, in broad terms, the fund is a UK authorised fund or the firm is doing the activity from the UK. This is the same as before the end of the transition period.’

It is understood that individual funds may fall under different categories and that compensation coverage will depend on different factors for each fund.

A spokesperson for the regulator was unable to offer concrete examples of which funds – domiciled in the EU but managed from the UK – would be covered by UK domestic rules, however.

Funds based in overseas jurisdictions, such as Dublin and Luxembourg, were not previously covered by the FSCS but, while the UK was part of the EU, investors had recourse to the FCA.

But as of this month, the FCA ceased being a member of the EU’s financial watchdog board, meaning it is no longer be able to intervene and pressure European regulators on behalf of UK investors.

UK retail customers in EU-based funds will now have to apply directly to foreign compensation schemes to get their money back if a product blows up. Depending on the fund’s domicile this may have to be done in the fund provider’s local language, rather than in English.

A recent update on the FSCS website said: ‘UK based customers of EEA authorised investment firms operating in the UK are protected by EEA compensation schemes. After 31 December 2020, FSCS protection will be extended to customers of firms with UK branches, equivalent to the cover provided to customers of UK firms.

‘This is to provide certainty to UK customers. Customers of EEA authorised firms without a UK branch will not have access to the FSCS, other than where there is existing FSCS cover in respect of the activities of certain incoming fund managers.’

The Treasury has agreed to continue allowing 9,000 EU-based funds to be sold to UK investors after Brexit despite the fact the EU is not offering reciprocity and the FCA will have no regulatory oversight of these products.

This is a significantly larger number than the UK’s 3,000 domestically based mandates, making the universe available to UK investors dominated by funds not covered by the FSCS redress schemes.

The watchdog is expected to consult on the details of the post-Brexit regime and this will give more clarity on the matter but the timing of that consultation is not yet known.

According to reports in The Mail on Sunday, the government is trying to secure a reciprocal deal that will allow UK financial services firms to market into the block, but it is still unclear whether the EU is willing to respond in kind.

http://citywire.co.uk/funds-insider...exit-eu-funds-compensation-confusion/a1448616