Jobs from London are deducted from fund industry
Asset managers are leaving
As figures from the career network LinkedIn show, fund managers are finding fewer and fewer jobs in London . In the meantime, the number of job offers for asset management has shrunk by half compared to the time before Brexit. So far, the banks have often talked about the consequences of Brexit for the British financial community. Gladly we referred to Switzerland, which does not belong to the EU and is nevertheless economically successful. However, there is rarely a word about the Swiss fund companies. These arranged more badly than right with the situation, which cost them dearly. They need to open additional EU locations and some markets remain completely closed to them.
Similar problems are likely to come to London. Paris and Luxembourg can benefit from Brexit . Here, one looks for twice as many fund managers as before the exit of Great Britain from the European Union. In the City of London are about 8,100 billion pounds at stake . These are approximately 9,226 billion euros of investment funds managed in the City of London. 20 percent of them come from customers in Europe.
Fund companies are increasingly relocating to the mainland
Although London is still ahead when it comes to investment funds. Nevertheless, various fund companies are already considering moving their businesses to other EU countries . A study by the EY consultancy has revealed that 51 percent of large fund companies currently plan to focus more on other countries within the EU. After the referendum, it was just 35 percent.
Great Britain as a third country
The negotiations for Brexit are far from over. As things stand, the United Kingdom is likely to become a third country. This means that for him different rules apply than for member states of the European Union . In the meantime, the International Association for Alternative Asset Management, Aima for short, has published a position paper outlining issues that affect asset managers, the EU and the UK. So far, the fund managers have been able to sell their fund products in the EU market with the EU rules AIFMD, Mifid II, Mifir, UCITS and Emir.
Aima demands that solutions be found in the transitional period and that the UK Government pave the way for British regulation to be considered equivalent by the EU. Cooperation agreements must be concluded for the British regulators with the European counterparts. According to Aima, a grandfathering agreement should mean that existing business conditions can continue for the time being. It is also important to think about whether the British market should not be kept open to the EU competition on the Swiss model.