The city firm set up by Brexiteer Jacob Rees-Mogg has established an investment fund in Ireland to protect client money from the financial dangers posed by the Brexit policies championed by the Conservative MP.
Somerset Capital Management (SCM) described Brexit as a serious risk in the prospectus for its latest fund, with the no-deal “hard Brexit” pushed for by Rees-Mogg considered to pose the greatest danger.
In reference to Brexit, the prospectus warns: “During, and possibly after, this period there is likely to be considerable uncertainty as to the position of the UK and the arrangements which will apply to its relationships with the EU.”
It continues: As [SCM is] based in the UK and a fund’s investments may be located in the UK or the EU, a fund may as a result be affected by the events described above.”
Despite the clear warnings about the effect of Brexit uncertainty on the fund, when quizzed about the decision to open a fund in Ireland, Rees-Mogg told the Guardian it had “nothing whatsoever to do with Brexit”.
Rees-Mogg continues dismiss concerns that a hard Brexit could severely damage the British economy as “Project Fear”, but the company that pays him £14,00 per month for his “expertise” a few days a month, has now confirmed the opposite.
This embarrassing disclosure comes a week after Foreign Secretary and Brexiteer Boris Johnson admitted in leaked remarks that Brexit could cause a “meltdown”, but called for calm in the face of such drastic consequences.