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The Financial Conduct Authority’s letter contains 30 questions about the effect of Brexit on asset managers’ business models, including whether or not UK-based companies are planning to relocate staff or operations to the EU.
Asset managers have also been asked to explain whether their Brexit contingency plans will affect their capital base or IT systems; whether they have applied for new licences from foreign regulators; and to what extent fund houses are responding to Brexit based on how other companies react.
The letter comes at a pivotal moment for the UK’s investment industry, with many asset managers divided on how best to prepare for Britain’s departure from the EU before formal negotiations over the terms of Brexit between Brussels and Westminster begin.
Last week it emerged that Jupiter and Legal & General Investment Management, two of Britain’s largest fund companies, plan to set up new entities in mainland Europe in response to Brexit, while Intermediate Capital Group and M&G have already strengthened their presence in Luxembourg.
Other asset managers, including Schroders and Ashmore, have held back from making operational changes before having more clarity on Britain’s future relationship with the EU. [...]
Full article on Financial Times (subscription required)