I live in the EU. Will you still be able to provide services to me?
Yes, for existing clients nothing will change. We will continue to look after your financial needs now and in the future. However, we won’t be taking on any new clients who are resident in the EU/EEA.
Will I be able to transact as normal on or after 2 January 2021?
Yes. Our banking operations and treasury teams will be executing transactions as normal.
Will I be able to continue to send or pay in Euros electronically?
Yes, you will still be able to send euros from, and electronically remit euros to, your account(s) at Nedbank Private Wealth.
I have a UK bank account and want to use my Visa Platinum Debit card to pay merchants in the EU.
We have received assurances from our Visa processor that you will be able to continue to use your Visa Platinum debit cards globally as normal.
Will Nedbank Private Wealth still be executing trade instructions?
Yes, it will be business as usual for the execution of trade instructions.
Will MiFID still be applicable?
Yes, where MiFID rules currently apply, these will continue after 2 January 2021.
How will Brexit impact the investment portfolio Nedbank Private Wealth manages on my behalf?
It is our job as portfolio managers to consider the ramifications of Brexit and then implement a strategy that is able to mitigate the most likely risks while maximising opportunity.
It is important to emphasise that our managed investment strategies do not have a regional bias to the UK. Our strategies are positioned according to our views on the global investment landscape. UK assets are only one relatively small part of that landscape in normal times, and currently the combination of heightened risks and the lack of clear opportunities means that we have substantially reduced our exposures to the UK.
From a currency perspective, we have minimal sterling exposure in non-sterling strategies. While sterling could appreciate in value over the long term, at present and over the medium term the upside to the pound is limited given there is currently no real single / positive scenario that would realistically take us back to previous “average” levels (i.e. GBP/USD1.5 any time soon).
We are also maintaining our usual long-term focus, which means that at time like this we can tune out the highest-frequency drama, with only the most significant developments having even the potential to affect investment positioning. All the while we are monitoring markets for any long term opportunities that might present themselves in the short term.
There are three key messages to keep in mind:
- Nedbank Private Wealth managed investment portfolios are about as anti-sterling as they can reasonably be.
- Brexit may cause some minor short term fluctuations in portfolio valuations; however long term returns will not be determined by Brexit.
- Having a professionally managed portfolio means that when things change, as they constantly do, you can be sure your portfolio will be actively positioned to aim to take advantage of the opportunities that change presents.
How does Brexit affect my assets held with Nedbank Private Wealth?
- There is no change to the Depositor’s Compensation Schemes in the UK, Jersey and Isle of Man.
- Our correspondent banks are prepared for Brexit, and have confirmed they do not expect any disruption to normal services.
- Our investment custodian, Citi, and the stockbrokers that we utilise for trading, are prepared for Brexit and have confirmed no disruption is expected to normal services.
- Our treasury team has increased our liquidity so we will be able to cope with higher levels of currency exchange activity, should this occur.
- UK and Crown Dependencies financial services regulations are the same standard as EU regulations should the UK stand on its own, so customer safeguards will remain in place across the industry.
Will Brexit impact the stability of Nedbank Private Wealth?
There is unlikely to be any impact. Firstly, Nedbank Private Wealth is well capitalised and retains levels of capital well above regulatory minimum requirements. It has a low risk balance sheet with no debt servicing obligations and high levels of liquidity.
Nedbank Private Wealth’s approach to liquidity management is very conservative, benefitting from a strong portfolio of high quality negotiable instruments. Cash placements with third party banks are generally for periods no greater than seven days and Nedbank Private Wealth Liquidity is very strong.
Secondly, we apply a policy of very limited lending (sometimes referred to as deposit upstreaming) to our parent and also restrict the size of our money market exposures with other major financial institutions. All such exposures are only made with banks that are considered systemically important either globally or within their own geographic regions, and consequently are subject to much higher supervisory expectations and are required to have full resolution planning in place (“resolution” is the restructuring of a bank by a resolution authority through the use of resolution tools in order to safeguard public interests, including the continuity of the bank’s critical functions, financial stability and minimal costs to taxpayers). This ensures diversity of risk on behalf of our clients and individual exposures therefore remain extremely modest given the scale of our balance sheet and reserves.
Are there any risks to the security of my assets?
We have guarantees from our custodian that all assets held will continue to be secure and accessible after 2 January 2021.
What is the likely impact of Brexit on the financial services industry in the Channel Islands?
Although closely connected to the UK, the Crown Dependencies of Guernsey and Jersey (“the Channel Islands”) are self-governing, are not subject to UK law and have never been part of the EU. Guernsey and Jersey’s financial services industries are not impacted by the UK’s membership of the EU. Certain aspects of EU legislation are adopted by the Channel Islands in order to comply with bilateral agreements in place between Guernsey and Jersey and member states of the EU, but this position will not change. As such, Brexit will have no direct effect on the financial services industry in the Channel Islands.
What is the likely impact of Brexit on the financial services industry in the Isle of Man?
Although closely connected to the UK, the Crown Dependency of the Isle of Man is self-governing and is not included within the scope of the UK’s membership of the EU. No change in the relationship between the Isle of Man and the UK is anticipated as a result of its withdrawal from the EU. As such, Brexit will have no direct, first order impact on the financial services industry in the Isle of Man.
Does Nedbank Private Wealth do “passporting”?
Passporting is the process whereby British-based financial institutions, such as banks, insurance providers, or asset management firms, can sell their products and services into the rest of the EU without the need to obtain a license, get regulatory approval, or set up local subsidiaries to do so.
Nedbank Private Wealth does not utilise passporting. Any restrictions around passporting, will have no impact on Nedbank Private Wealth or the services we provide.
Will there be any changes to how Nedbank Private Wealth uses clients’ personal data (for clients who live in EU)?
There will be no change to data protection in relation to our clients. Information on what we do with personal data is contained in our Privacy Notice, which is available on our website here.
The UK left the EU on 31 January 2020 and entered a transition period with the EU, due to end on 31 December 2020. During the transition period, EU law continues to apply in the UK.
The UK and the EU have indicated, in a Political Declaration that they intend to reach agreement on the future relationship between the UK and the EU by the end of 2020. The UK government has indicated it does not intend to extend the transition period.
The Withdrawal Agreement sets out the terms of the UK’s exit from the EU, including provisions for a transition period until 31 December 2020.
The Political Declaration sets out the framework for the future relationship between the UK and the EU. It covers trade and economic cooperation with the EU, alongside agreements on security and other areas. The UK and EU will use this framework as the starting point for negotiations on the future UK-EU relationship.
If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.
We will get back to you as soon as we can during office hours, which are Monday to Friday, 8am to 8pm (UK time), except for UK public holidays.
Thank you for your interest in Nedbank Private Wealth. Please call us on +44 (0)1624 645000 or complete the requested information and one of our team will get back to you soon. We look forward to speaking with you. Please note: If you are an EU resident, we are unfortunately unable to offer our services to you at present.
* Required fields
Give us a call today on +44 (0)1624 645000 or please complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.
Our office hours are weekdays from 8am to 8pm UK time, except for UK public holidays.
* Required field