NCI calls for dual funds regime as post-Brexit solution

UK leaving single market

Thinktank New City Initiative has suggested a dual funds regime as a way to regulate the asset management sector in a post-Brexit world.

The NCI consulted with members, which are all boutique asset managers, following the Brexit vote and more than half said regulatory arbitrage was their biggest worry. This was followed by market volatility and fundraising challenges. UK Prime Minister Theresa May has already said Brexit means the country will leave the European single market, potentially ending the passporting regime which allows asset managers to trade easily with the EU without needing a base in each country. British fund managers rely on European investors for 13% of their assets under management on average - altho...