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Scottish independence badged a ‘time bomb’ for advisers

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  • 05/06/2014
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A 'yes' vote for Scottish Independence is a potential time bomb for advisers based in Scotland and could also impact advisers in the rest of the UK, warns a technology firm.

A survey by Intelliflo found that just over half Scottish-based advisers think a yes vote on 18 September would have a negative effect on their business.

However, a third believe it wouldn’t affect their business at all and 12% believe it would be positive.

On voting intentions, three quarters said they would vote no to independence, with 13% saying yes and one in 10 saying don’t know yet.

Nick Eatock, CEO Intelliflo said: “Advisers who think a positive vote for Scottish Independence will leave them with business pretty much as normal could be in for a massive shock post 18 September if the vote is ‘yes’. Financial arrangements will be a hot topic for everyone who has savings, investments, pensions and mortgages and advisers will be in the front line of dealing with this.”

The report showed coping with the extra administration if Scotland separates from England was the top concern for Scottish based advisers.

The second biggest worry was understanding the impact changes will have on existing clients’ financial arrangements.

A quarter of those surveyed have major concerns about balancing the amount of work that would be required alongside running a profitable business and the same number worry about how they would handle any compliance issues surrounding selling new business.

If Scotland achieved independence, three quarters want to see the British pound as the currency, with almost one in five preferring a new Scottish currency and just under one in 10 choosing an alternative option, including the Euro.

Eatock said: “Although it would be at least 18 months before any major changes came into play following a yes vote, clients will be looking to advisers to provide them with scenarios that might impact their financial arrangements from day one of the vote being positive.

“For advisers, not being prepared could present two major risks to business: one is reputational and the other is having a situation where unplanned and unpaid for time is spent reacting to clients in a panic about what to do. Both could prove to be very costly to business in the short to medium term.”

Intelliflo has prepared a tick list of issues for advisers to consider ahead of the vote and a consumer Q&A.

To download the lists, click HERE.

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