June 8th was a landmark day for the UK as a shock election result left many contemplating its impact on the UK’s economy.

In reality, a hung Parliament could potentially be a good thing for investors.

Alan Mellor, Managing Partner of Phillip Bates & Co Chartered Financial Services, said: “Unless something changes, we are in a good position.

“A weak government can’t do very much – politicians won’t want to mess with things, which is good news for investments.”

However, Alan acknowledged that the increased likelihood of a second election within the next 12 months could change this outlook.

“The worry, of course, is if this current level of uncertainty gets worse – there could very well be another election soon and this could have a negative impact on long-term investments.

“It is difficult for businesses to make long-term investment decisions at a time like this.”

Alan does, meanwhile, think we could now be edging more towards a softer Brexit.

“As a result of the election, Theresa May now has no clear mandate, which is a better prospect for the economy“ he said.

“The Government are not going to be able to force through anything radical at the moment. Indeed, the pound fell on the night of the election but this was by very little as not a lot has changed, and I don’t think anything will change anytime soon.”

Building long-term relationships is essential in being able to provide the best possible financial advice.

We had a really good example of this recently when a couple, in their 60s, who we have advised for over 10 years, made an appointment to see us.

The meeting was a little bit different because they asked if they could also bring along their children, who are in their early 20s.

For much of the meeting, we simply provided a relaxed, professional environment for mum and dad to discuss their financial plans with their children. They chatted through their own financial priorities but also how they wanted to be able to assist their children in their own lives, such as helping them to take the first step on the property ladder.

We had been helping the parents with their financial planning for over a decade. In addition to providing financial advice, we had invested time understanding their requirements and motivations and building a trusted relationship.

When the time came to sit down with their children, they had no hesitation in asking if we would be happy to facilitate. The family, themselves, had shown great maturity in agreeing to have such a conversation, something that demonstrated their recognition of the importance of long-term financial planning.

In our January newsletter, we outlined Theresa May’s 12 objectives as she laid out her vision post-Brexit Britain.

Since then, there have been a handful of developments in the UK leaving the EU.

Article 50 has been triggered, which formally begins the Brexit process.

EU Council President, Donald Tusk, has since said the other European countries “already miss [the UK].”

Upon hearing Mr Tusk’s comments, Theresa May said: “We’ll still be part of Europe, although we’ll be leaving the EU institutions.”

The triggering of Article 50 means Brexit is scheduled to officially take place on 29th March 2019.

Alan Mellor said: “It’s still difficult to know how Brexit will affect our client’s investments. We do though keep a close watch on the balance of client’s investments, the key is to have a sensible long term investment plan and a diverse range of investments in a broad range of assets and geographies.”