24th June 2016

Aberdeen Asset Management: UK votes to leave the European Union

Earlier today, it was confirmed that the people of the United Kingdom (UK) have voted to leave the European Union (EU).

We operate in a number of countries across Europe through locally regulated subsidiaries. Our principal cross-border fund range for European investors located outside the UK is domiciled in Luxembourg. We do not expect either our non-UK or UK businesses to be affected in a substantive way by the result of the referendum although clearly there may be regulatory changes in the longer term. However, we operate currently in over 25 countries around the world and are experienced at adjusting our business to service our clients’ needs in a wide range of regulatory environments. We are confident that we will be able to meet the challenge which this result presents. 

David Cameron has announced he will resign as UK Prime Minister and made clear that Article 50, the formal mechanism by which a Member State may leave the EU, will not be triggered until his successor is in post in at least three months’ time. 

After Article 50 is triggered, there will be a period (expected to be at least two years) during which the constitutional and legislative arrangements will be negotiated and the effective date of the UK’s exit from the EU will be agreed. 

Between now and the agreed exit date, the current position in relation to regulation and investor protection will remain largely unchanged. 

We remain focused on the best interests of our clients, shareholders and other stakeholders and will monitor negotiations closely to identify any emerging issues that might necessitate changes to the structure of our clients’ portfolios and funds. 

For now, markets are likely to remain volatile as investors digest the consequences of the referendum result. As long-term investors, our fund managers will not be making knee-jerk decisions but rather continue to invest with the best interests of our clients in mind.

Updates will be circulated as the situation develops over the next few weeks.

Brexit, Investments