22 October 2017

Financial Times: Asset management task force discusses post-Brexit policy

Stephen Barclay, the City minister, convened a task force with the heads of eight of the UK’s largest fund houses, including Keith Skeoch of Standard Life Aberdeen, Peter Harrison of Schroders and Mark Zinkula of Legal & General Investment Management.

The group discussed concerns about Mifid licences granted by the UK regulator, which enable funds to be sold to European clients, as well as so-called delegation, which allows funds domiciled in one country to be managed by people in another. These could become void if Britain loses access to the single market.

The group will meet Mr Barclay, who supported the Leave campaign during last year’s referendum, every quarter for two years as part of a government push to allay criticism that it is ignoring corporate Britain’s concerns about leaving the EU.

Many asset managers with operations in the UK have boosted their businesses in the EU in case of a hard Brexit. Jupiter, M&G, LGIM, Intermediate Capital Group, Blackstone and Legg Mason are among the companies that have applied for additional licenses from EU-based regulators and hired staff or established offices on the mainland.

Mr Barclay’s task force examined ways of halting this shift by improving the UK’s competitiveness. It discussed fintech, alternative investments and global trading opportunities, in addition to licences and regulation

The Financial Conduct Authority, which last month announced a new hub to speed up the authorisation of mutual funds in the UK, sent Chris Woolard, director of strategy and competition, and Megan Butler, director of supervision, to the meeting.

“The task force will play an important role in informing effective policy developments,” Mr Barclay said. “As a government, we are determined to work closely with the financial services sector to ensure it remains a leading global centre, including in asset management.”

Full article on Financial Times (subscription required)

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