In light of the Brexit negotiations and the finance industry’s concerns regarding their outcome, HM Treasury has released its revised version of the 2013 Investment Management Strategy (IMS), hedging for a negative scenario.
The working paper aims at providing the necessary proposals and impetus for the British Government’s efforts to secure not only a safety net against the industry’s freefall in case of a hard-Brexit, but it actually aims at ensuring that the UK market hold on to its globally competitive position.
The European Banking Authority will be relocated to Paris, firms seek to change their seats to one of the EU27 countries, and investors rush to sell shares in what Funds Europe calls the ‘UK equity “exodus”’ (see article here).
To counter these systemic cracks, the IMS II proposes six areas of growth that will ‘strengthen the country’s asset management industry’, in particular:
- UK universities will foster centres of excellence to ‘ensure supply of talent’;
- Supporting integration of technology into finance (FinTech innovation);
- Provide a ‘stable tax regime’;
- Enhance the dialogue between executives and stakeholders;
- Incentivise innovative strategies;
- Attract foreign funds under the auspices of the UK-based asset management firms; (see article here).
Read here:
HM Treasury’s Investment Management Strategy II paper.
Funds Europe’s article: British government proposes ‘UK Ucits’.