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The trade body, which represents the UK asset management industry, raises questions over why some agency managers should be included, especially as the EU has not adopted this approach. However the IMA fully supported the introduction of legislation for CCPs (Central Counterparty Clearing Houses) ahead of the EU, stating that all CCPs should be considered systemic.
Guy Sears, IMA’s Wholesale Director, said: “HMT should be applauded for proposing a resolution regime for CCPs ahead of Europe. Given the UK’s position as a global asset management centre, the protection of client positions and margin must be a key objective of any new regime. But we disagree with the proposal to extend the resolution regime to firms not contemplated by the European proposals. Given the cost involved in preparing recovery and resolution plans, HMT have cast the net too wide by including agency asset managers. They are already proportionately regulated in the UK in relation to wind-down planning and their international competitiveness must not be diminished by overly cautious thinking on systemic risk.”
Press release with link to full letter