Industry faces tough questions post-election as 'many risks have increased significantly'

Brexit talks have started

Asset management firms and investors face navigating a prolonged period of political uncertainty as a hung parliament leaves open the potential for a change of course on Brexit, a new prime minister and even another General Election this year.

The surprise result on 8 June hit sterling hardest, down 2.4% against the dollar before rebounding, while UK equities remained resilient. However, investors and financial services chiefs are set for a volatile few months ahead in terms of the political backdrop, as they seek clarity on the UK's Brexit stance in the EU negotiations, and weigh up the impact on the UK economy and markets.     Having previously indicated the UK could be heading for a 'hard Brexit', Prime Minister Theresa May could now be forced to rethink her stance on EEA membership as she seeks the help of the Democrati...