Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Brexit: UK pushes to protect asset management industry

Britain is Europe’s largest fund management centre, with £8.1 trillion in assets under management, but EU countries hope to lure businesses

Simon Jessop
Wednesday 06 December 2017 15:21 GMT
Comments
Britain’s asset management industry employs over 38,000 people
Britain’s asset management industry employs over 38,000 people (Getty)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The UK laid out plans on Wednesday to protect and grow its asset management industry as it looks to fight off Brexit-fuelled competition from rival European centres for the valuable business.

Britain is Europe’s largest fund management centre, with £8.1 trillion in assets under management, but countries such as Ireland, Luxembourg and France hope to lure businesses that are concerned about the impact of Britain’s vote to leave the European Union.

In its ‘UK Investment Management Strategy II’, the Government said it was updating its original 2013 document to “strengthen the UK’s brand for asset management, enabling firms to respond effectively to the UK’s withdrawal from the European Union and capitalise upon future trading opportunities”.

Amid concern that Brexit could hamper the industry’s ability to access top global investment talent, the Government said it would support ‘Asset Management Centres of Excellence’ at UK universities across the country, including apprenticeships, but did not give a timeline or say who would fund the centres.

“The industry’s academic research spend is currently spread thinly across many institutions and initiatives. By consolidating the majority of existing research... the industry would be able to benefit from economies of scale and have a greater impact on skills,” the Government said.

“These Centres will form the backbone of the UK’s world-leading asset management capabilities and professionalism where qualifications would be universally recognised as a global standard.”

The plan also aims to attract overseas firms to locate in the UK, including through marketing and liaising with trade bodies such as the Investment Association.

Britain’s asset management industry employs over 38,000 people, the Government said, and is bigger than that of France, Germany and the Netherlands combined.

“The UK is a world leader in asset management, and it is vital that we keep it that way,” Stephen Barclay, economic secretary to the Treasury, said in a statement.

The Government said the Treasury could look to expand the number of countries its senior officials engage with through financial and economic dialogue or bi-lateral engagement from the current list of Brazil, China, India, Hong Kong, Korea and Singapore.

Other plans include to develop financial technology, including a blockchain-enabled digital fund, and to support growth in “innovative” investment strategies such as social impact investing.

The asset management industry generates around 1 per cent of the UK’s gross domestic product.

Chris Cummings, chief executive of the Investment Association, said the strategy would provide “a roadmap to success through Brexit and beyond”.

Reuters

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in