Uncertainty at the Heart of the Brexit Debate

At our recent seminar we joined forces with the Investment Migration Council and brought together leading voices of the investment migration industry to explore what Brexit and EU reform would mean for our clients.

With over 100 attendees, one key take-away that all experts ranging from policy to tax, banking, real estate and immigration agreed on is that both sets of proposed reforms are adding a new dimension of uncertainty to planning for private clients. While many of the panellists took the view that neither reform is met with rising levels of anxiety in the ranks of clients, there was a consensus that any potential change in policy may create new growth opportunities and innovative ways of helping our clients plan their move from one nation to another.

Brexit and its implications

Fragomen’s Christine Sullivan contemplated both the option of “in” and “out” in the Brexit debate and gave the audience a view of the referendum from Brussels, where she heads up Fragomen’s Private Client Practice. While the focus in continental Europe is mostly on potential reforms of the European Union and the Schengen area, the implications of Brexit have brought other regional players to the forefront. “If the UK loses some of its pull with investors after Brexit, we may see more and more investors who choose to reside elsewhere in Europe and take advantage of other European offerings,” Christine explained. There is even a talk of an EU-wide investor visa programme, Christine further explained. A proposition that would possibly mean more competition for the existing players in the European market.

Schengen suspension and border control

The other area that is getting a lot of media attention and has raised numerous discussions is the question of Schengen suspension and the impact on investor migrants in Europe. The Schengen area, characterized by strong external borders but no internal borders has recently  seen a reintroduction of border controls as regulated by Article 23 of the Schengen treaty in response to terrorism and the refugee crisis. The heated debates around this issue are, as Christine illustrated for the audience, “an inconvenience for some travels who are accessing the Schengen area on a regular basis. More checks sometimes mean a less swift transit from one member state to another but this isn’t something that our clients will find too uncomfortable.” There are however a few changes on the horizon that may mean more issues for international travellers. The EU is currently actively considering suspension of visa-free travel for the US and Canadian passport holders and additionally a new electronic entry system to consolidate border controls.

We’ll be following any further debate in the run-up to the Brexit referendum on our blog. To read more about the looming reforms in Europe and around the Schengen area have a look at this recent story.