EU referendum a ‘fundamental risk’ to UK asset managers, PwC warns

EU European Commission Exterior 480

Plans for a referendum on the UK’s future in the EU are a risk to the growth of the UK asset management industry, experts warn.

Last week, prime minister David Cameron pledged a referendum if the Conservative Party remains in power after the 2015 general election.

PricewaterhouseCoopers, the IMA and the European Fund and Asset Management Association warn this could damage UK asset management as it could lead to a loss of influence.

The Ucits regulatory framework is overseen by the EU Commission and this will continue even if the UK’s relationship with the EU changes. UK asset managers run a large pool of European investors’ money in EU-based funds.

PwC hedge fund leader Rob Mellor says: “A UK asset management industry outside of Europe may face obstacles to the continued management of assets for EU-based investors. This is a fundamental risk to the growth of the industry.”

IMA chief executive Daniel Godfrey and Efama director general Peter de Proft say in a joint statement: “The UK asset management industry gains hugely from the single market.”