Money managers brace for life after Brexit
Skip to main content
pilogo-NEW
Subscribe
  • Subscribe
  • My Account
  • login
  • NEWS
    • Asset owners and the coronavirus
    • Alternatives
    • Consultants
    • Coronavirus
    • Defined Contribution
    • ESG
    • Frontlines
    • Hedge Funds
    • Investing / Portfolio Strategies
    • Money Management
    • Pension Funds
    • People Moves
    • Private Equity
    • Real Estate
    • Searches & Hires News
    • SECURE Act
    • Special Reports
    • WorldPensionSummit
    • Ron Schmitz
      Pandemic drives faster transition for Virginia to private markets
      Mubadala Investment Co. logo
      Mubadala draws on portfolio in coronavirus fight
      T.J. Carlson
      Texas Muni reduces downside risk during pandemic, finding opportunities now
      Scott Davis
      ‘Triage plan’ at Indiana system helped stem losses
    • John Haggerty
      Sector’s risks need to be weighed, consultant says
      A healthcare worker provides care for a COVID-19 patient in the intensive care unit at the Saint Joseph hospital in Marseille, France, on Nov. 20, 2020.
      Private equity’s health-care role draws spotlight
      Some alternative strategies struggle in first quarter following tough 2020
      Close up of Business people shaking hands, finishing up meeting, business etiquette, congratulation, merger and acquisition concept
      Cathay Innovation Partners takes minority stake in Seaya Ventures
    • Hub International continues buying spree with IBG acquisition
      Callan brings on 2 executives
      Hub International agrees to buy Plan Sponsor Consultants
      Aon names public markets solution leader
    • Michelle Dunstan
      Move to link exec pay to ESG integration growing
      The J.P. Morgan Chase logo displayed at a branch bank
      J.P. Morgan sells $13 billion of bonds in largest-ever bank deal
      John Bakarat
      Commentary: COVID-19 and real estate debt – where investors should be looking
      IACPM: Credit managers see stabilizing effect from stimulus programs
    • Pentegra joins with EPIC to offer 3(16) fiduciary services
      Interest rises in keeping retiree assets in-plan
      Joseph Healy
      Smaller DC plans place greater focus on improving financial wellness efforts
      Pentegra launches pooled employer plan
    • Focus on human rights a challenge in China
      Michelle Dunstan
      Move to link exec pay to ESG integration growing
      WTW to cut carbon footprint of OCIO portfolios by half by 2030
      SEC Commissioners Testify Before The House Financial Services Committee
      SEC shouldn’t require ESG metrics – commissioner
    • Girls Who Invest
      MetLife plans 3 internships for Girls Who Invest scholars
      Model home
      Resmark sees niche in buying, leasing model homes
      Riscura stories
      Dystopian tales explore altered retirement reality
      Joel Holsinger
      Ares wants to do good – and profit – with fund
    • Karen Karniol-Tambour
      Bridgewater appoints 2 co-CIOs to oversee new sustainable investing group
      Hedge funds post best first-quarter return since 2000
      Jason Kephart
      Managers see good times ahead in 2021
      Jev Mehmet, CEO of Brevan Howard's Coremont unit
      Brevan Howard runs $50 billion unit like BlackRock’s Aladdin
    • Morgan Stanley logo on buidling corner with stock ticker showing stock prices and movements
      Morgan Stanley joins bank bond bonanza with 3-part sale
      BentallGreenOak closes latest European fund at $2.3 billion
      Supreme Court seeks government input on Gannett ERISA suit
      A British Union Jack flies in front of Big Ben
      Fee-cap changes will not alter DC investment in illiquids – PLSA
    • SSGA promotes executive to head of global manager research
      Invesco logo shown on the floor of the New York Stock Exchange
      watch video
      1:28
      Invesco’s bid for performance gains
      Larry Fink
      BlackRock tops $9 trillion on record inflows
      Ameriprise, Amundi add to their European rosters
    • Melrose Industries to plug U.K. pension deficit by selling assets
      Public plan funding inches up in first quarter
      Louisiana Firefighters puts Boston Partners on watch
      Corporate plan funding gets a boost from higher discount rates – Milliman
    • SSGA promotes executive to head of global manager research
      Cohen & Steers adds team for new private real estate business
      Sacha Sadan
      FCA taps LGIM executive for first director of ESG
      Tufts taps interim co-CIO as new investment chief
    • Paul Morrissey
      Blackstone Growth picks managing director to lead European investing
      Bills of euro, dollar and pound currencies, among others
      Ardian closes latest buyout fund at $8.8 billion
      Hand typing on stationary iPhone at an office reception desk
      Private equity’s taste for tech spurs $80 billion deal spree
      Vista Equity promotes 2 to leadership roles on 2 funds
    • BentallGreenOak closes latest European fund at $2.3 billion
      Cohen & Steers adds team for new private real estate business
      Australia’s Centuria makes takeover bid for Primewest
      CalSTRS indutrial property
      Investors hungry for industrial properties
    • Andy Schreiner
      New PEPs targeting firms without retirement plans
      Jackie Walorski
      Contribution catch-up for caregivers gaining favor
      Retirement cartoon
      Hopes rising for retirement readiness in 2021
      Neal and Brady
      Retirement security could be only issue both sides accept
    • A coin representing Bitcoin cryptocurrency in the U.K.
      Cryptocurrency and digital assets
      Corporate pension contributions
      Eddy Awards 2021
      COVID-19: One year in
    • U.S. still a key market for investors
      Collected coverage of P&I's 2020 WorldPensionSummit
      Pedestrians pass a large advertisement on the Arndale Center shopping mall reading 'Act now to avoid a local lockdown' in Manchester, England
      COVID-19 puts new opportunities and risks on the agenda - WPS panelists
      Screens display stock price information over the trading floor of the NYSE Euronext exchange in Paris
      Private assets will continue to grow in portfolios – WPS panelists
  • Data
    • Research Center
    • Searches & Hires Database
    • Searches & Hires News
    • RFPs
    • Charts / Infographics
    • Sponsored Research
    • Trackers
    • Q2 2020 searches and hires overview report
      Q2 2020 money manager M&A activity summary
      Q2 2020 legal overview report
      Q1 2020 searches and hires overview report
    • Ohio State Teachers calls on Hellman & Friedman buyout fund
      South Carolina discloses up to $495 million in commitments
      Fonds de Reserve looking for dollar-denominated corporate debt managers
      Arizona taps BNY Mellon as custodian
    • Ohio State Teachers calls on Hellman & Friedman buyout fund
      South Carolina discloses up to $495 million in commitments
      Fonds de Reserve looking for dollar-denominated corporate debt managers
      Arizona taps BNY Mellon as custodian
    • Emerging Market Debt Manager Services
      Real Assets Consultant
      Passive Investment Management Services
      Active Extended Global Credit Manager Search
    • Private real estate funds continue rebound
      Managed account adoption stalls in 2020
      U.S. bonds have worst quarterly return since 1981
      Stable value retains edge over money market funds
    • Institutional Investors: Shared Expectations, Divergent Paths
      Global Investor Study 2016
      Workplace Financial Wellness
    • U.S. Endowment Returns Tracker
      Pension Fund Returns Tracker
      Earnings Tracker
      Corporate Pension Contribution Tracker
  • Insights
    • Opinion
    • White Papers
    • Industry Voices
    • Letters to the Editor
    • Partner Content
    • Publisher's Update
    • Marcie Frost
      CalPERS: Urgency underscores all areas of providing retirement security
      BPTW cartoon
      P&I’s Best Places to Work marking a milestone
      CalPERS cartoon
      Urgency underscores CalPERS' search for a CIO
      Multiemployer plans cartoon
      Money — but no fixes — for multiemployer plans
    • Bipsync Client Stories: RMS in Action at Pensions and Superannuation Funds
      COVID-19 Makes LP Portfolio Management More Important Than Ever
      China: the outlook is bright for longer-term investors
      Finding Differentiation in Securitized Assets
    • John Bakarat
      Commentary: COVID-19 and real estate debt – where investors should be looking
      Jake Remley
      Commentary: Inflation expectations vs. reality in the bond market
      Greg Shea and Steven Kindred
      Commentary: The solution for yield-seeking allocators may be hiding in plain sight
      Jim Park
      Commentary: Asian Americans, Pacific Islanders face ‘bamboo ceiling’ in money management
    • Marcie Frost
      CalPERS: Urgency underscores all areas of providing retirement security
      Writer using a typewriter
      OCIO industry needs to adopt GIPS
      Writer or journalist workplace. stock illustration
      Even as it assails China, Trump administration emulates it
      Skeptical of Main Street support for proxy adviser proposal
    • P&I Content Solutions
      Research for Institutional Money Management
      P&I Content Solutions
      Top questions for institutional investors
      Sponsored Content By Newton Investment Management
      Growth and Innovation in Emerging Markets
      P&I Content Solutions
      In Challenging Markets, Systematic Global Macro Strategies Could Hold Opportunity
    • Help us help you by supporting quality journalism
      You Must Believe in Spring
      Everything Must Change
      Tomatoes & Investments
  • Multimedia
    • Videos
    • Webinars
    • Polls
    • Slideshows
    • Charts / Infographics
    • Invesco logo shown on the floor of the New York Stock Exchange
      watch video
      1:28
      Invesco’s bid for performance gains
      watch video
      1:23
      The passive fixed-income glut
      watch video
      1:38
      Is it time for DC plans to embrace private equity?
      watch video
      5:39
      The coronavirus pandemic: One year later
    • New Outlook on Income: A Framework for Evaluating DC Retirement Income Solutions
      Investing in infrastructure at the right price
      Time for Action: Shifting Pension Dynamics from a Macro and Regulatory Relief Perspective
      Understanding the PEP Evolution
    • POLL: Cryptocurrency investing
      POLL: The Biden infrastructure plan
      POLL: Retirement income solutions
      POLL: Working after the pandemic
    • view gallery
      9 photos
      Coronavirus and the markets
      view gallery
      22 photos
      The 1,000 largest retirement funds: 2020
      view gallery
      10 photos
      Outlook 2020
      view gallery
      10 photos
      2019 as seen through the eyes of Roger
    • By the Numbers for April 2021
      Graphic: The state of DC plans
      Graphic: Invesco’s bid for performance gains
      Private real estate funds continue rebound
  • Events
    • Conferences
    • Webinars
    • DC Investment Lineup Virtual Series
      ESG Investing Virtual Series
      Private Markets Virtual Series
      Retirement Income Conference
    • New Outlook on Income: A Framework for Evaluating DC Retirement Income Solutions
      Investing in infrastructure at the right price
      Time for Action: Shifting Pension Dynamics from a Macro and Regulatory Relief Perspective
      Understanding the PEP Evolution
  • Careers
  • Research Center
MENU
Breadcrumb
  1. Home
  2. MONEY MANAGEMENT
June 12, 2017 01:00 AM

Money managers brace for life after Brexit

Paulina Pielichata
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Phil Poole thinks U.K. managers will need help when meeting with EU clients.

    While U.K.'s formal exit from the European Union is two years away, supervisory authorities in London and on the Continent are preparing for what comes next for money managers.

    A year after the June 23, 2016, referendum, the industry's focus seems to be shifting away from an assumption that passporting rights will be a certain outcome for London firms to other alternatives, sources said, including the potential need to relocate staff and activities out of the U.K.

    Money managers recognize the difficulties they will face should there be a lack of agreement on passporting rights or regulatory equivalence. And sources warned that there is a much stronger likelihood of a lack of agreement due to a tight negotiation schedule.

    Phil Poole, global head of research and member of the Deutsche Asset Management CIO executive committee in London, said in a telephone interview: “Without passporting or agreement on regulatory equivalence, after Brexit U.K. firms will need EU representation to operate in EU member states.”

    “In an analogous situation, under certain circumstances, an asset management client in Thailand could be covered by specialist sales from a regional hub like Singapore, but in order to meet such clients in Bangkok, (the executive) would need to be chaperoned by someone from the local office for regulatory purposes,” Mr. Poole said.

    “Doing business in Europe, post-Brexit, similarly is likely to require an executive from an EU-regulated entity to accompany a U.K.-based manager when meeting an EU client,” Mr. Poole said.

    A relocation to, or creating a subsidiary in, an EU member state may be the most cost efficient if not the only option for many money managers if they want to retain their European clients.According to the U.K. Investment Association, European clients constitute more than half of U.K. overseas business. U.K. managers run £2.2 trillion ($2.8 trillion) out of £5.7 trillion total assets for overseas clients.

    Some £1.2 trillion of these overseas assets belong to European investors.

    Although the terms of Brexit are yet to be agreed on, the European Securities and Markets Authority already published a non-binding opinion,on May 31, containing a wish list of requirements that U.K. firms will need to meet to continue to operate in the EU.

    ESMA said the opinion was published due to “increased volume of requests from U.K. financial market participants seeking to relocate to the EU27.”

    ESMA's statement confirmed that firms relocating to EU countries will need to be compliant with the most important European regulations including the Alternative Investment Fund Managers Directive, Undertakings for Collective Investment in Transferable Securities Directive and the Markets in Financial Instruments directives, MiFID I and MiFID II.

    The European regulator also warned that U.K. firms will need to obtain new permissions to operate in the European market after Brexit.

    “Outsourcing or delegation arrangements, under which entities confer either a substantial degree of activities or critical functions to other entities, should not result in those entities becoming letterbox entities nor in creating obstacles to effective and efficient supervision and enforcement,” the ESMA statement said.

    In late May, the Financial Conduct Authority in the U.K. separately asked U.K. money managers to share their contingency plans after Brexit becomes reality.

    The FCA's spokesman said in a statement: “It is important for us as supervisors to understand the plans that our regulated firms have regarding Brexit.”

    Sheila Nicoll, head of public policy at Schroders in London, commented in an email: “Like other financial services institutions, our overall aim, through Brexit and beyond, is to continue to offer a high-quality, cost-effective service to our clients. We would like to do this in the most friction-free way for them as possible.”

    CO110733610.PDF

    General principles to support supervisory convergence in the context of the United Kingdom withdrawing from the European Union

    CO110733610.PDF >
    Related Articles
    Markets so far shrugging off daily dose of global surprises
    Picture remains fuzzy a year after Brexit
    Diversification helps, but it's still scary out there
    Picture remains fuzzy a year after Brexit
    Another potential roadblock over Brexit
    Complexity spurs increased use of outsourcing
    Managers could face new woes in EU because of ESMA 'opinions' regulator burden
    European regulators offer support for latest action
    German election shows political risk hasn't abated in Europe
    Recommended for You
    SSGA promotes executive to head of global manager research
    Ameriprise, Amundi add to their European rosters
    Ameriprise, Amundi add to their European rosters
    BlackRock tops $9 trillion on record inflows
    BlackRock tops $9 trillion on record inflows
    Innovations in DC: Helping Supercharge Retirement Outcomes
    Sponsored Content: Innovations in DC: Helping Supercharge Retirement Outcomes
    sponsored
    Events
     
     
    Sponsored
    White Papers
    Bipsync Client Stories: RMS in Action at Pensions and Superannuation Funds
    COVID-19 Makes LP Portfolio Management More Important Than Ever
    China: the outlook is bright for longer-term investors
    Finding Differentiation in Securitized Assets
    Green and sustainable bonds in emerging markets
    Portfolio Protection: One Size Fits None
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    April 5, 2021 Page One

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    pilogo-NEW
    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    150 N. Michigan Ave.
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • NEWS
      • Asset owners and the coronavirus
      • Alternatives
      • Consultants
      • Coronavirus
      • Defined Contribution
      • ESG
      • Frontlines
      • Hedge Funds
      • Investing / Portfolio Strategies
      • Money Management
      • Pension Funds
      • People Moves
      • Private Equity
      • Real Estate
      • Searches & Hires News
      • SECURE Act
      • Special Reports
      • WorldPensionSummit
    • Data
      • Research Center
      • Searches & Hires Database
      • Searches & Hires News
      • RFPs
      • Charts / Infographics
      • Sponsored Research
      • Trackers
    • Insights
      • Opinion
      • White Papers
      • Industry Voices
      • Letters to the Editor
      • Partner Content
      • Publisher's Update
    • Multimedia
      • Videos
      • Webinars
      • Polls
      • Slideshows
      • Charts / Infographics
    • Events
      • Conferences
      • Webinars
    • Careers
    • Research Center