Dienstag, 27.06.2017 09:08 Uhr

Business competition after Brexit

Verantwortlicher Autor: Carlo Marino Rome, 29.05.2017, 14:52 Uhr
Kommentar: +++ Wirtschaft und Finanzen +++ Bericht 4364x gelesen

Rome [ENA] While a delegation from the European Medicines Agency (EMA) last Thursday visited Milan to assess its credentials to host the agency when it moves from London after Brexit, Germany’s Federal Financial Supervisory Authority (BaFin) is opening its doors to British asset managers as the UK and EU prepare to negotiate the terms of Brexit. Germany and other EU countries are competing to attract asset management business

from the UK as a result of the country deciding to exit the EU. The French asset management association, (Association Française de la Gestion financière - AFG), for example, has been active in seeking to promote Paris as a hub. At the end of 2015 €4.65trn of assets were managed in the UK, compared with €2.81trn in Germany and €3.86trn in France. As a consequence of the imminent Brexit process, Germany’s Federal Financial Supervisory Authority is paying particular attention to the critical questions and issues of companies located in the United Kingdom with a view to reducing operational risks and offering a trustworthy supervisory framework aimed mainly at UK asset managers thinking about relocating to Germany.

The regulator said it would set out its administration and supervisory practice in relation to the asset management sector, comprising its licencing procedure for asset management companies, delegation issues, and marketing notifications from third countries. Communication with the pertinent Financial Supervisory Authority BaFin employees can be conducted in English. In most cases, BaFin also accepts documentation in English. Where legal provisions require that German be used, the Supervisory Authority will assist the foreign companies in fulfilling these requirements.

The Federal Financial Supervisory Authority declared: “Brexit will likely have an impact on the regulatory and business environment of asset management companies and investment funds located in the UK, in particular in relation to cross-border business.” There is a concern that asset managers in the UK will be no more able to establish branches, or market and distribute funds easily all over the European Union as a result of the country’s pending exit from the Union. In this way, interested companies can be soon able to provide financial services in Germany and from Germany, doing so within a reliable supervisory framework.

The EU’s passporting regime allows cross-border activities once a firm has received regulatory authorisation in its home member state. Concerns are possible restrictions on the management of assets from the UK for clients based in the EU, and reduced labour mobility. In the UK 70% of a 2017 survey respondents said they believed Brexit had caused the competitiveness of their market to deteriorate. Over half of respondents presumed firms with a strong UK presence to reduce that as a result of leaving the European Union.

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