UK launches Brexit asset management taskforce
The UK government is launching an asset management taskforce of company CEOs, the Financial Conduct Authority (FCA) and investor groups, to discuss how the industry can meet the challenges posed by Brexit.
Stephen Barclay, the minister for the City of London, launched the initiative to provide the financial services sector, citing a “clear need” for action following the UK’s decision to leave the European Union, the FCA said in a statement.
At a recently held investment summit, Barclay said: “The government was keen to keep the UK as global location for asset management.
“The taskforce will bring together company CEOs within the UK asset management industry and investor groups and FCA. It will be a forum to discuss how government, industry and the regulator can work collaboratively to stay competitive and deliver for investors. He highlighted business opportunities in non-European countries such as Brazil, China and India.”
“These are opportunities that we’re determined to realise, whether that’s attracting Brazilian pension funds to the UK or enabling UK firms to do more business in Brazil”, he added.
The UK government would seek to support the global delegation model for portfolio management, in partnership with other countries that share our views on this issue.
Barclays saw the model as an integral component of the asset management industry not only for the UK, but also for the US, Asia and the rest of Europe.
It allows UK asset managers to sit at the heart of global investment allocation and also benefit Europe. A restricted delegation model would cause fragmentation and prompt funds located in Europe leave the continent for other financial centres such as New York or Hong Kong.
There are clearly huge opportunities for growth in global markets. Brexit must act as a spur to accelerate our response to these global opportunities, not a distraction.
Barclay would also be looking at four areas beyond tax: the regulatory framework, fintech, opportunities for innovation, and skills.