Global asset managers have been given permission by regulators in Dublin and Luxembourg to set up investment operations outside the UK in moves that could undermine London’s role as Europe’s finance capital.
UK and US investment groups, including Legal & General Investment Management, Aviva Investors, BNY Mellon and JPMorgan Asset Management, have been granted enhanced authorisations as they step up preparations for a possible hard Brexit.
There has been a surge in applications for Mifid licences, which allow investment groups to continue to serve large institutional European clients by using segregated mandates. Other managers with offices in Luxembourg and Dublin have added to their current licences with “Mifid top-ups”, which grant them similar rights as a full Mifid authorisation. Dublin and Luxembourg are traditional hubs for middle and back-office investment operations but Mifid licences also allow fund managers to carry out portfolio management and day-to-day trading. Dublin and Luxembourg have emerged as potential long-term hubs for front-end investment teams, which have previously favoured London.
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