The continuing saga surrounding oil prices is fuelling demand for financial advice in Britain from high net worth individuals, reveals one of the world’s largest independent financial advisory organisations.
The observation from deVere United Kingdom, part of deVere Group, comes as volatility in global financial markets continues to reflect investors’ concerns over the oil rout.
Mike Coady, Managing Director of deVere United Kingdom, explains: “Since mid-2015 there has been a considerable drop in the global oil price. Despite some minor rallies, the overall price has more than halved since last June.
“The turbulence in the oil sector reflects the wider commodities industry, with global prices of raw materials having fallen significantly in recent months. The volatility looks likely to remain for the foreseeable future.
“The achingly low prices are, unsurprisingly, taking their toll on oil and gas companies. As we have seen in recent times, many such firms – including some of the world’s biggest players in the industry – are now leaning out, holding back on new ventures, delaying contracts, and scaling back on jobs. Naturally, this scenario also has an impact on the firms supporting the oil and gas sectors.
“All this is now beginning to have a knock-on effect on the UK’s financial advisory sector because a high proportion of overseas oil and gas firms’ senior and middle management positions are, typically, made up of expatriates.
He continues: “Many expatriates who were working in these sectors are returning back to the UK – and this is a trend we expect to gather pace throughout 2016.
“deVere United Kingdom, which specialises in financial planning matters for those coming back to live in Britain either permanently or temporarily, has taken on more returning expats in the last three months than it did in the entire year of 2015.
“Whether they are heading back to the UK for good or just for a matter of months, returning expats have always required specialist financial advice due to the international elements of their financial affairs, the more complex tax implications, and because they are typically able to take advantage of products and services that are only available to those with a globally-focussed portfolio.”
Mr Coady concludes: “The UK’s financial advisory sector is likely to experience soaring demand for financial advice from high net worth individuals throughout 2016, as an increasing number of expats return to Britain due to the slump in global oil prices.”