Deloitte comments on Brexit implications for the asset management industry
4 July 2016
Tony Gaughan, Deloitte partner for investment management said:
“The near-term priority for firms should to be to engage with clients, fund gatekeepers, vendors and employees to engender confidence and to manage market volatility. As a starting point, asset managers must understand what the possible implications could be and what they’d mean for market access, product ranges and distribution networks. Whatever the outcome, the industry is used to delivering services on a cross-jurisdictional basis, which provides a degree of resilience. In addition, firms should also seek to reassure their own staff, some of whom may be uncertain about their personal circumstances.
“From a regulatory stand point, an important step will be exploring the extent to which regulations will really change. Many regulations covering asset management will still be in place, because they are driven by global rather than just EU standards. The UK may seek to establish an equivalent corresponding EU regulatory framework to maintain access to EU markets. Asset managers will need to continue managing the implementation of pending regulations, such as MiFID II, during the transition.
“Asset managers will need to review a number of factors ranging from the location of various activities to operational considerations, such as staff mobility, data movement and vendor services. Changes to organisational and legal structures to preserve market access and tax efficiency could have cost implications. As a result, modelling the likely effect on the top and bottom line, capital requirements and tax implications will need to be considered to ensure financial sustainability. Asset managers will need to broaden their planning to ensure they can respond to how the situation develops.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
Member of Deloitte Touche Tohmatsu Limited.