Yes or No…the debate on Scottish Independence
Without a doubt Scotland will prosper whether it becomes independent or not. But what are the potential implications for you if it does…
In the past six months this must be the singly most raised subject at our client meetings and to be quite honest I’m not sure if I’ve been able to come up with a definitive answer on what independence might mean for you, us and/or your investments.
That said I wish to reassure you that your underlying investment portfolio – be it held within a Pension or some other Account – will be unaffected by a Yes or No vote. As your Portfolio invests in over 8,000 different companies listed throughout the world, with at a guess less than 1% situated in Scotland, it is the world economy that will continue to drive your investment returns.
So with that put to one side I guess the next biggest question of independence, or the prospect of it, is which currency Scotland will use? In this instance your guess is as good as mine. With a good deal of brinksmanship being shown by both sides this looks as if it will come down to some pretty serious negotiation. The good news is that your Portfolio is ‘portable’ and if, as suggested, an independent Scotland has its own currency a Wrap investor should be free to choose between that or Sterling as their denomination of choice.
What I can say is that Independence would undoubtedly result in increased costs with an equivalent Financial Conduct Authority (FCA) and Ombudsmen being established for no real extra benefit.
As with all these things the devil will be in the detail. It is just we don’t know which ‘devil’ we’ll be dealing with…