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Govt wary of Brexit threat to asset managers as it braces for French raid

The Government is braced for the likes of Paris, Frankfurt and Luxembourg to launch a new fight to win a fund management business from London after Brexit.

According to the Financial Times, a French-backed move to limit the access British managers have to EU funds is feared by ministers and Bank of England officials.

A member of Prime Minister Theresa May’s Brexit team is quoted as saying: “There has been a lot of focus on the impact of Brexit on investment banks, but this is becoming the key issue.”

The £8trn sector may be one of the City’s most exposed parts of the City after Brexit, officials are said to fear.

One fund manager spoken to by the paper said that safeguarding delegation – where staff run funds domiciled in other EU countries – should be the “Government’s key priority”, as the FT reports that British officials believe French President Emmanuel Macron has put his weight behind more supervision of delegation decisions.

The Treasury said: “The UK is the pre-eminent global centre for financial services, and the asset management industry plays a pivotal part. We are determined that the UK remains a global hub to this important sector.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. We can’t blame the EU for seeking to manage their capital finance internally, or pinch external business from London.

    At present, they simply do not have the capacity or expertise to rival London in any material sense, but that will not last forever.

    Even post-Brexit, London’s rival will remain New York, and few US banks are likely to prefer EU trading rules to UK.

    Nor is this Brexit scenario much different to the Remain one we would have faced. The EU had already tested London’s legal rights in the Courts, and a Remain vote is likely to have resulted in an ultimatum of join the euro or suffer the consequences.

    • So either way we are stuffed. Brexit probably just makes it worse. I notice from recent stats that UK funds are not exactly popular at the moment.

      Just returning from Europe the tourist exchange rate is now parity so joining the Euro might be somewhat less painful than hitherto. I just hope it doesn’t sink further, but I’ll not hold my breath. A Corbyn government might see £2 = €1.

  2. How about making Canary Wharf an
    ‘International Centre’ a la Dubai? But only if the EU makes it difficult. It has also worked for Dublin.

  3. France labour laws

    Visit to Chateau d’If: –

    Man in cubicle, takes our 5 Euros, uses his top of the range computer and paper to print off our tickets with bar codes. All no doubt paid for by Brussels (Us et al), we take two steps to the right and give our tickets to another man, sitting on a stool, who tears them in half and lets us in.

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