The UK is the largest centre for asset management in the EU, with almost £4 trillion of assets under management. The sector is a major employer in the UK, providing direct employment to around 24,000 workers, according to data from the Investment Management Association.
The Government is committed to ensuring that the UK is an attractive place to do business and remains globally competitive. The Government unveiled plans in its June 2010 Budget to consult the industry on the key issues relating to the UK’s competitiveness. This included consulting on amendments to the Stamp Duty Reserve Tax rules and regulations for Funds Investing in Non-Reporting Offshore Funds (FINROF) to better enable UK-based funds to compete on a level-playing field with those based offshore.
In November 2010, the Financial Secretary to the Treasury, Mark Hoban, announced the Government will look to launch a new authorised fund regime for a tax-transparent fund vehicle. This will allow the UK to compete as a home for the new types of fund structures being created under UCITS IV and promote the UK as a global centre for asset management. The Treasury will work with industry to design this new vehicle in advance of its introduction.
On the European side, the Treasury has played a significant role in the development of the important UCITS IV Directive, which will simplify the UCITS framework and make it easier and more effective for industry to offer these internationally-respected products to investors. The UCITS IV Directive must be transposed into UK law by 1 July 2011 and the Government has launched a consultation to establish how best this can be achieved. For more information, please follow this link to the
The Alternative Investment Fund Managers Directive (AIFMD ) seeks to establish a harmonised regime across the EU for regulating various forms of alternative investment management, including hedge funds and private equity. The AIFMD will increase the amount of disclosure made by funds, both to investors and supervisors. The UK negotiated an agreement where managers of hedge funds and private equity providers will be regulated in an internationally consistent and non-discriminatory way, introducing greater competition, opening up new markets and creating new investment opportunities The Commission is now considering the EU implementing measures that will provide further details, in advance of the implementation by Member States in 2013.
For more information on the current European agenda for asset management, please visit our Europe & International policy section.
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