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At a meeting of financial watchdogs held in Washington last month, US representatives told their EU counterparts they were firmly against changes to delegation rules.
Under those rules, funds can be domiciled and regulated in EU centres such as Dublin or Luxembourg while being managed from London, New York and Hong Kong.
Trade groups representing the US investment industry have increased their campaigning in Brussels to try to ensure global managers are not affected by the reforms.
They have been joined by governments and lobbyists from the UK and other European and Asian countries that are opposed to changes to the status quo.
“This is a very important topic,” said Eva Mykolenko, associate chief counsel for international affairs at the Investment Company Institute, which advocates on behalf of US and international asset managers.
“We have shared our concerns about how this is not a good development for global asset managers and how they manage assets globally.”
Last month the US Treasury hosted a meeting between representatives of the Securities and Exchange Commission, Commodity Futures Trading Commission and Federal Reserve, along with their counterparts from the European Commission, European Securities and Markets Authority and European Banking Authority.
Among the agenda items was a discussion about the regulatory effects of EU structural changes after Brexit.
The European Commission, the EU’s executive arm, last year proposed beefing up powers of supervisory authorities such as Esma and allowing them to block fund managers’ delegation arrangements. The proposal was seen as a move against post-Brexit Britain but it has wider consequences for global investment companies that manage money outside the EU and offer funds to EU investors.
US groups are not the only ones raising concerns about the wider effect of changes to delegation rules.
Full article on Financial Times (subscription required)