IA's Sears: Brexit would lead to 'massive disruption' for fund managers

Difficulties trading with Europe

Investment Association interim chief executive Guy Sears has outlined the possible implications of the UK exiting the European Union, including a re-classification of UCITS funds.

Speaking at a Treasury Select Committee meeting this morning, Sears (pictured) talked about the economic implications and financial costs of a Brexit. He said UCITS funds, which are currently able to be marketed across Europe regardless of domicile, could need to be re-classified as alternative investment funds. If Britain was no longer part of the European Union, funds would instead need to show a "equivalence of regulation" between the UK regulator and the European regulator, in order to be sold on the continent. Kames CEO: Brexit could damage UK's asset management competitivenes...