|
|
Just under £500bn of assets are held in Irish products on behalf of UK investors, representing about a quarter of the Irish funds industry. The UK’s departure from the EU threatens those cross-border arrangements.
The UK’s Financial Conduct Authority and the Central Bank of Ireland, the national regulator, aim to sign a memorandum of understanding, which would let UK companies continue to manage Irish-domiciled funds.
“Firms have been searching for reassurance that regulators were preparing for when the UK becomes a third country. There will be a sense of relief in the City that the FCA is having these conversations,” a senior industry person said. “It is vital that there is a framework of agreements ready by the time we leave the EU.”
At the FCA asset management conference last month, the regulator said its aim was to have supervisory co-operation agreements in place “as soon as possible”. There are 1,283 funds or sub-funds domiciled in Ireland that are run by 173 managers based in the UK, according to Maples and Calder, the law firm. These hold a total of £480bn. [...]
Full article on Financial Times (subscription required)