K & K GLOBAL CONSULTING

RESEARCH

In the last issue ( issue 10 ) of the Buy-side Perspectives , K & KGC mentioned that authorities and buy-side associations within the remaining EU27 countries are incentivising UK based asset management firms to relocate functions from London to EU countries post Brexit . The Financial Times reported on 22 nd November 2017 that the British Chancellor Philip Hammond ( pictured right ) has now detailed a new initiative to bolster the UK ’ s 7 trillion GBP investment management sector . The article specifies further “ As part of major tax changes contained in its first strategy , the government abolished the so-called schedule 19 stamp duty reserve tax , which was identified by asset managers as a major deterrent to locating funds in the UK .”

K & KGC believes the UK government also needs to instruct the UK FCA , known for its diligence , to ease its pressure on the asset management industry to make it more compelling for asset management firms to retain their UK base . As detailed in the trade and transaction reporting article ( page 10 ), the French , German and Swedish buy-side associations and regulators have given many asset management firms an exemption from transaction reporting .

Asset Management firms reportedly * considering staff transfers and moves from London by transfer location :

* Sources : Financial Times 28 / 5 , The Independent 6 / 7 , Investment Europe 28 / 6 , Professional Adviser 1 / 6 , Bloomberg 22 / 6 , Financial News 4 / 10 , The Telegraph 19 / 7 , L ’ Agefi 12 / 7 .

Winter 2017 www . buysideintel . com

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