A UK general election looks on the cards, in essence a second Brexit referendum, so it’s imperative that investors in the UK and internationally take action now to ‘election-proof’ their finances.

Following the Prime Minister pausing his Brexit bill on Tuesday, after MPs rebuffed his timetable to pass through the House of Commons in three days, the EU’s decision on whether to grant a further Brexit extension is due on Friday.

If this is the case, the deadline will likely be delayed until January, on the advice of European Council President, Donald Tusk, and Boris Johnson will then call for a general election.

With the Brexit extension granted, Labour will back a snap election.

As things stand, there has never been more uncertainty surrounding a general election. Any small shift could lead to a substantial difference in the result.

Consequently, with a highly uncertain UK general election undoubtedly on the way, investors need to take action now to safeguard their money and assets.

To my mind, as I was quoted by The Express, and other media, there are two principal reasons why investors should election-proof their finances sooner rather than later.

First, we may see Labour leader Jeremy Corbyn become Britain’s next Prime Minister.

His high tax, low profit and anti-business policies will spook the financial markets, negatively impact the UK economy’s sustainable growth, pile more pressure on UK financial assets and result in a significant sterling sell-off.

Second, the general election may result in a hung parliament which would mean more uncertainty, more deliberation and more chaos.

We could see Boris stay in Number 10 but minus a majority.

As such, the Brexit Party could jump on the fact that Johnson didn’t deliver Brexit by the October 31 deadline, whilst the Remain vote could be divided between Labour, the Lib Dems, the Green Party and the SNP.

Therefore, either of these election outcomes would lead to ongoing or heightened uncertainty, undermining confidence in Britain’s economy and the pound further still.

As I said earlier this week, quoted by USA Today and the Daily Mail, amongst others, wealth, jobs and businesses are in need for certainty, not just in the UK but overseas as well.

The Brexit fog is affecting investment and confidence in the UK. So far, this saga has cost the country tens of billions of pounds as well as three and a half years of lost opportunity.

What happens now will depend on the length of extension offered by the European Union.

But whatever the outcome, this is just the start. The uncertainty will continue, particularly with the likelihood of a general election in the short-term.

Therefore, it’s crucial that investors protect themselves from the uncertainty, make the most of the inevitable opportunities and remain sufficiently diversified across asset classes, sectors, currencies and regions.

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