Managers warned 'prepare for the worst' as Parliament suspension puts EU access at risk

Fears shutdown could delay passage of financial services laws

Asset managers have been warned to "prepare for the worst" in terms of access to European investors and markets post-Brexit, with the UK Government's decision to suspend Parliament looking set to delay the passage of vital financial services legislation.

While Parliament has "onshored" aspects of European financial services legislation in order to prevent major disruption to UK firms after Brexit, the amended Financial Services Act (aFSA) has not yet been passed in its entirety; there is therefore potential for the door to Europe shutting on UK firms in the event of no deal. Fund managers slow to ditch LIBOR-linked benchmarks Owen Lysak, partner at law firm Clifford Chance, said financial services clients contacted the firm due to fears regarding the impact of Parliament's prorogation, and he had told them to "prepare for the worst an...