Brexit ‚Nightmare Scenario‘ Spelled Out by Giant Fund in Finland

„We can probably manage the economic impact of the U.K. leaving“ the European Union, Risto Murto, who runs Varma Mutual Pension Insurance Co., said in an interview in Helsinki on Aug. 23. „The nightmare scenario is that somehow you build up the walls -- for example, split the market by requiring the asset-management operations to be inside the EU.“

Fourteen months after Britons voted to leave the EU, little is known of the shape the divorce will take. Key issues such as the cost of leaving and citizens‘ rights have yet to be resolved, let alone the infinite complexities of how to approach a separation of U.K. and EU financial markets. Moody‘s Investors Service said in July that the risk the U.K. will drop out of the EU in two years without a proper Brexit deal is „substantial.“