Brexit could force wealth migration, impacting brands and businesses

As a No Deal Brexit looks more likely, and a Prime Minister to potentially step down, many wealthy businesses and individuals are considering migrating their investments, which will have a significant impact on the UK's retail and luxury landscape.

According to a survey by Affluent & HNWIs, 200 investors with assets of at least 400,000 pounds were asked about their views on Brexit and how it might affect their finances.

To understand how this could be impacting wealthy Brits, Altiant conducted a survey in March 2019 among among its high net worth individuals (HNWIs) finding 35 percent believe they will be worse off since Brexit was announced, with 43 percent saying their finances were largely unchanged.

45 percent of the survey respondents said that they had not rearranged their investment strategy or portfolio according to the initial March 29th deadline. However, 55 percent had made provisions, 24 percent doing so independently and 31 percent with the help of a financial advisor or wealth management company.

This should signal to the British government that if Brexit does make British companies less competitive internationally, investment flight from the UK and foreign investment into the country could be adversely and quickly impacted.

The potential flight of private British capital could create a long-term, self perpetuating vicious cycle in the UK economy which will be difficult to break out of. To counter this, the May administration will need to place significant emphasis on jobs creating foreign direct investment.