Asset management has been dragged into the tussle between Brussels and London, providing a little insight into who is and is not the UK’s ally at this time.
France has jumped all over Brexit to attract asset managers and fintechs from London, but Luxembourg is telling them it’s OK to stay where they are.
The chief focal point is delegation, which some feel is under threat as the European Commission plans to reinforce powers of the European Securities and Markets Authority, including how it regulates delegation.
Luxembourg would probably like more portfolio managers, buy-side traders and other front-office workers to move there (at least until the cost of living rises). But the Ucits investment fund rules have always allowed funds domiciled in one place to delegate certain functions to other countries, and Luxembourg wants things to stay that way – to its and the UK’s mutual benefit.
Nick Fitzpatrick, group editor, Funds Europe
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