The UK government has called on fund managers, asset owners and service providers to help boost the UK’s standing as a post-Brexit fund domicile.
The Treasury issued a call for input as part of a review of the UK funds regime first announced in March 2020.
Government wants the industry to “identify options which will make the UK a more attractive location to set up, manage and administer funds, and which will support a wider range of more efficient investments better suited to investors’ needs”.
The document, which can be downloaded at www.gov.uk, has more than 30 questions focused on three areas: tax arrangements, regulation, and opportunities for wider reforms.
Areas covered by the questions include feedback on the effectiveness of recent reforms to the real estate investment trust regime and the low takeup of tax-elected funds, as well as broader questions on future regulation.
For example, the review document asks: “Do you agree that reforms to enhance the attractiveness of the UK funds regime should focus on appealing to AIFs [alternative investment funds] targeting international markets? Which markets would be most valuable and what would be the key obstacles to overcome in each?”
Respondents have until April 20 to submit their responses, which the government will then use to set the scope and objectives of its wider reform.
The review comes at a critical time for the UK funds industry as it deals with both the recovery from the pandemic and the exit from the European Union.
Rahul Manvatkar, investment funds partner at law firm Linklaters said: “With the UK out of the EU, there is a recognition that it will need to do more to compete with the other global financial centres, especially those in Europe, and that includes enhancing its reputation as an attractive hub to set up and administer funds.
“There will inevitably be some challenges ahead, including the lack of European marketing passports, but the Treasury’s call for input today will be welcomed by the UK funds industry who will be only too aware of the need for the UK to remain competitive in the post-Brexit era,” added Manvatkar.
© 2021 funds europe
