BoE warns asset management 'fragmentation' could harm UK's financial resilience post-Brexit

Financial Stability Report identifies risks posed by China; likely repricing to come

The Bank of England has warned "fragmentation" of asset management functions split between the EU and the UK post-Brexit could hit the UK's financial diversification and resilience, in this morning's Financial Stability Report.

In the report, the Bank said that the reduced ability to delegate asset management services from the UK across EU borders could see an increased reliance on the banking sector, particularly if "no deal" is achieved in negotiating the UK's departure from the union. Investment Week's Brexit Crib Sheet: All the key stories as Article 50 triggered "Delegation of asset management across borders is a well-established practice," the report said. "For example, 40% of the assets managed in the UK are managed for overseas clients; around half of this activity is on behalf of clients outside Eur...