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July/August 2016 magazine

Published: Jul 2016

Contents


Editorial

Brexit… what to do now?

What many people, industry experts, politicians, the media and professional commentators thought would never happen, has. On 24th June we all awoke to the news that the British people had voted by a margin of 52% to 48% in favour of leaving the European Union and financial markets around the world went into meltdown. UK Prime Minister David Cameron resigned. There was a coup to oust the leader of the Labour Party and a meeting of the European Union in Brussels came to no real decision as to exactly when the UK will invoke Article 50 of the Lisbon Treaty which would start the divorce process.

So what does this all mean for you, your company and, importantly, the treasury functions you are tasked to manage?

This is a complex issue and we want to invite you to tell us what you are doing and what advice you are receiving. Please let us know on or off the record at editorial@treasurytoday.com We will report back and be your information base for this important topic. You can also start a discussion or ask a question in our LinkedIn Brexit discussion group.

Your immediate focus is probably on managing market volatility but here are some of the issues and questions we are hearing:

  • Is my company credit rating likely to be impacted? Might this be linked to the recent downgrade by Moodys of the UK’s credit rating to negative?

  • What does Brexit mean for SEPA?

  • How is my supply chain likely to be impacted?

  • Should I deploy my UK-based personnel in my EU-based operations?

  • Is my UK-domiciled bank likely to move its offices to the EU?

  • Should I review my treasury policy in any way?

  • Should I delay or bring forward projects?

  • Should we be thinking about alternative suppliers/markets ex-EU?

  • Should we be considering Ireland as an EU base now that the UK has voted to leave the EU?

  • If we are in M&A dialogue, are there any changes to competition law which affect M&As?

  • Do we have any legal contracts/documentation which reference EU legislation which may be impacted?

  • What is the likely approach to renegotiating the UK’s trade arrangements with the EU?

    • Membership of the EEA (eg Norway)

    • Membership of EFTA (eg Switzerland)

    • Customs Union (eg Turkey)

    • WTO rules, or,

    • A bespoke deal

  • What is the likely impact for my company’s trading arrangements with the EU?

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