LONDON, Oct 31 (Reuters) - Around 80 percent of institutional investors believe Britain’s decision to leave the European Union will have an impact on their operating models, a survey published on Tuesday showed.
Of the 100 global investors polled in the quarterly survey by State Street, 82 percent said Brexit would have an impact, up from 72 percent in the previous survey, while 22 percent said the impact would be “significant”.
“Investors continue to believe that regulatory reporting, such as required under Solvency II and AIFMD, is the area that businesses will need greatest help with following Brexit,” State Street said, adding that just under a third cited this factor.
Solvency II and AIFMD are EU directives that look to set common rules for a broad range of investors.
Despite the concerns over Brexit, 60 percent of respondents in the survey - which comprised institutional and alternative investors - said they would not change their holdings of UK assets in the next six months.
Britain is due to leave the EU in March 2019 following a referendum in June last year. The government hopes to secure a comprehensive trade deal with the bloc, its biggest commercial partner, before leaving.
But the government also said on Tuesday it was accelerating preparations for “all eventualities” - signalling that it was not taking a trade deal for granted. Business leaders say time is running out for them to make investment decisions beyond the Brexit date. (Reporting by Abhinav Ramnarayan; Editing by John Geddie and Gareth Jones)