By George Prior
Sterling will experience a more sustained rally if British MPs decide to delay the UK’s current Brexit deadline today, says the CEO of one of the world’s largest independent financial advisory organizations.
The comments from Nigel Green, founder and chief executive of deVere Group, come ahead of Thursday evening’s parliamentary vote – the third in as many days. The pound surged more than one per cent against both the dollar and euro on Wednesday as parliament voted overwhelmingly against leaving the UK without a transition agreement.
Mr Green comments: “There is a growing sense of optimism that the UK will not now crash out of the EU without a deal. This is being reflected in sterling’s positive moves.
“We can expect a more sustained rally of the pound as a result of this week’s three votes, but only after the EU has forced the UK government to justify an extension to Article 50.
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He continues: “The government will be forced to articulate options that will be discussed by the parliament, such as Labour’s proposal for remaining in the customs union, the Norway Plus option, another referendum or general election. All but the latter will be good for sterling.
“An election would likely solve nothing since both main parties will presumably again have ‘supporting the will of the people on Brexit’ in their manifestos.”
Earlier this week, the deVere CEO joined the growing calls for a second referendum. He noted: “There is no parliamentary majority for any Brexit option. Allowing the public to vote and giving them a final say is quite simply the only credible solution we now have available.”
He goes on to add: “Any new vote must also include the 700,000-plus British expats who are disenfranchised from the UK political system after 15 years overseas and subsequently denied the vote on something that directly affects them.
“All other G7 countries except the UK allow their citizens voting rights for life. Why is Britain different? It is especially galling as they are potentially still liable for UK inheritance tax but are not allowed to vote in the UK after 15 years.”
Mr Green concludes: “The pound is likely to rally – but there’s also a note of caution as this will depend on what the government decides to do with any extension of the March 29 deadline.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.