UK raises questions over EU fund regulation suitability in post-Brexit regime

Money market funds

Regulators and government bodies within the UK are questioning the suitability of fund regulation within the European Union, according to transcripts from the Treasury Select Committee and reports in the Financial Times.

As part of the Brexit agreement, the UK said EU fund regulation would be considered "equivalent" until the end of 2025. As a result, EU-based funds can still use passports to sell to UK investors. However, as the deadline approaches the "equivalence" regime looks under threat. This would mean that EU fund managers may need to go through regulatory hurdles, offer UK based investor structures or stop offering some products in the UK. In a Treasury Select Committee on 16 January, Andrew Bailey, governor of the Bank of England, stressed concerns around money-market funds. Money-market ...