The Impact of Brexit on Financial Planning Services

Welcome! Today’s theme—The Impact of Brexit on Financial Planning Services—explores how regulation, markets, taxes, data, and day‑to‑day financial decisions have shifted since the UK left the EU. Read on, share your experience, and subscribe for ongoing, practical insights.

Regulation After Brexit: What Changed for Advice Access

From Passporting to Permissions

Before Brexit, UK firms could “passport” services across the EU; that straightforward access ended at the close of 2020. Today, many advisers need local authorizations or partnerships to serve EU‑based clients. Ask your planner to explain their permissions and how your service will be delivered.

Equivalence Decisions: Limits and Workarounds

The EU has granted limited equivalence in areas like clearing, but not in retail investment advice. Firms have responded by opening EU subsidiaries or collaborating with locally regulated partners. If you live in the EU, confirm where your contract sits and who is legally responsible for advice.

Consumer Duty Meets Divergence

The UK’s Consumer Duty—fully in force for open products in 2023—raises the bar on outcomes and communications. Meanwhile, EU rules are evolving separately. Expect documentation, product governance, and disclosure to diverge gradually. Ask for plain‑English explanations and subscribe to stay ahead of changes.

Cross‑Border Clients: Serving You Across the Channel

EU‑Resident UK Nationals: Staying Advised Legally

Post‑Brexit, a UK adviser may not be permitted to advise an EU‑resident client unless they hold the right local permissions. Many clients were migrated to EU entities, or service models were adapted. If you’ve moved, clarify your adviser’s authorization status and whether documents or fee structures will change.

Moving to the UK: Onboarding Without Friction

Arriving from the EU? Be ready for source‑of‑funds checks, updated KYC, and potential adjustments to existing EU investments. Discuss currency exposure, tax residency timing, and whether to hold, sell, or replace products. A clear onboarding roadmap reduces surprises and keeps your plan on track.

A Relocation Story: The Portugal Plan

When Emma and Josh moved to Lisbon in 2021, their UK adviser teamed with a Portuguese partner to maintain compliant service. They reviewed QROPS suitability, negotiated multi‑currency cash flows, and hedged a property deposit. What’s your relocation story? Share it, and subscribe to follow their next chapter.

Portfolios and Markets: Positioning Amid Post‑Brexit Shifts

GBP volatility spiked around the 2016 referendum and key negotiation milestones. Your planner can assess hedged share classes, natural hedges via global revenues, and cash‑flow currency needs. Start by mapping spending currencies over the next three years. Hedging should fit your goals, not chase headlines.

ISAs, SIPPs, and Cross‑Border Tax Nuance

ISAs are tax‑efficient within the UK system, but other countries may tax ISA income or gains. SIPPs remain powerful, yet residency can affect how withdrawals are treated. Obtain coordinated UK‑EU tax guidance so your net outcome—after all taxes—matches your plan and risk tolerance.

Pensions and QROPS: Suitability Before Transfers

Brexit heightened the importance of verifying scheme rules, charges, and advice requirements before any cross‑border pension transfer. The UK’s lifetime allowance was abolished in 2024, replaced by new lump‑sum limits, adding another layer of checks. Ensure suitability, cost transparency, and regulated advice every step.

Business Owners: Payroll, VAT, and Dividends

New customs and VAT frictions can strain cash flow, which then affects personal drawings and dividend plans. Work with your planner on buffers, tax installments, and emergency liquidity. Share your pain points in the comments—others will benefit from your lessons, and we’ll cover them in future posts.

Data, Compliance, and Trust: UK GDPR, EU Rules, and You

The EU granted the UK an adequacy decision in 2021, enabling data to flow lawfully, with reviews expected after four years. Firms may also use safeguards like standard contractual clauses. Ask your adviser which mechanism they rely on and how your documents are stored and protected.

Data, Compliance, and Trust: UK GDPR, EU Rules, and You

Cost‑and‑charges templates and disclosures may differ between the UK and EU. Expect slight variations in content, frequency, or terminology. Keep a digital vault of statements and letters, and ask your adviser for a quick guide to the formats you’ll receive after any jurisdictional change.

Entrepreneurs and SMEs: Financial Planning Under New Trade Realities

Cost Forecasting with New Customs and VAT

Importers often face new paperwork, brokerage fees, and potential timing differences for VAT. Those changes ripple into pricing, margins, and cash buffers. Build scenario ranges into forecasts, and align repayment schedules with seasonal cash cycles. Share your strategies so peers can learn from real‑world fixes.

Currency Strategy for Procurement and Pricing

When costs land in euros or dollars, a layered approach—forward hedges, natural offsets, and periodic price reviews—can stabilize margins. Collaborate with your adviser to link FX policy to budget cycles, inventory turnover, and personal cash needs. Curious about templates? Comment, and we’ll prioritize a walkthrough.

Case Study: The Butter‑Across‑Borders Bakery

A London bakery importing French butter faced delayed deliveries and FX swings. By adjusting reorder points, using partial hedges, and adopting flexible pricing bands, they stabilized margins without sacrificing quality. What operational tweak saved your margins post‑Brexit? Tell us—and subscribe for more case‑study breakdowns.