Luxembourg fund body hits out at ESMA's post-Brexit power grab

'Extra layer of regulation'

The Association of the Luxembourg Fund Industry (ALFI) has criticised EU plans that would see the European Securities and Markets Authority's (ESMA) powers expanded, enabling it to continue to regulate UK asset managers after Brexit and add "an extra layer of regulation".

The initial proposals, which form part of a European Commission review aiming to strengthen European supervisory authorities (ESAs), would also reduce the influence of national regulators and see ESMA take direct supervision of some investment funds.  EU warns UK asset managers to prepare for 'legal repercussions' of Brexit Under the proposals, ESMA would have regulatory authority over asset managers with funds domiciled within the EU, and asset managers would be forced to submit authorisation requests to ESMA when opting to delegate or outsource part of their activities to non-EU jur...