Playing matchmaker for the City: Who best to partner the UK for Europe's next centre of asset management?

Building up the future post-Brexit

The UK's £7.7trn asset management industry is pondering its next move. Despite HM Treasury's proposals for strengthening London’s competitiveness as an international asset management hub through tax reforms and innovative fund structures, Brexit continues to bring significant uncertainty to the industry.

The UK-EU Trade and Co-operation Agreement all but ignored financial services, resulting in passporting rights ending alongside the transition arrangement in January. UK firms must instead pin their hopes on reverse solicitation or on being granted equivalence as a third-country provider. Indeed, concerns are growing that the necessary market access may not be granted - or that negotiations could drag on for years with UK firms frozen out of the lucrative market. One thing is clear, whatever new arrangement is put in place is unlikely to replicate the benefits of full EU membership. ...