The UK government and the British financial industry are currently desperately looking for ways to keep the UK an attractive international financial centre post-Brexit. Indeed, since the EU referendum in June 2016, but especially in recent months, the financial industry on the island has lost a lot of staff, companies and assets. Asset management has been hit hardest, as Hagen Gerle explains in this article for FondsTrends, the information platform of Hauck & Aufhäuser Fund Services about current trends and topics in the fund business: Financial Centre UK Post-Brexit: Searching for A New Meaning (article available in German only).
British fund market
The British financial industry post Brexit: Hoping for equivalence – or move to the EU straight away? That is the topic of the latest, 6th episode of GFC (not the ,Global Financial Crisis‘) Podcast. The Brexit deal announced by the British government and the EU Commission on Christmas Eve largely excludes services – and with it the powerful British financial services industry with its immense share in economic output, tax revenue and employment. Especially for the British fund industry, which manages by its own record more than GBP 8.5 trillion in assets, a treaty with the EU about the future of financial services post Brexit is essential. However, the European Union doesn’t seem to be in a hurry with that … and every day without an agreement drives more business, firms, and staff to Europe – and unsettles British investment managers increasingly. You can find more information in our article in German or English.
This podcast is in German.
Length of this podcast: 14:20 min.
The United Kingdom and the European Union want to sign a “Memorandum of Understanding” by the end of March, which should determine how the financial services industry will proceed after Brexit. While the UK hopes that its regulations will also be recognised as equivalent on the continent, a level playing field seems to be more important for the EU. Every day without an agreement drives more business, firms, and staff to Europe – and unsettles British investment managers increasingly.
Things are not looking good for the UK as an international financial hub. While the Brexit deal may have been an unexpected Christmas present for some Brits, for many it is turning into a national tragedy. Enervated hauliers, angry fishermen and ripped-off online shoppers from the United Kingdom (UK) may soon be joined by relocating employees in financial services firms. The sales manager of a London investment boutique put it succinctly in a phone call with me the other day: “Down the line, if you want to work in the EU, you need the local licence.” Ergo, his employer is intensively looking for a location on the European mainland.
Considerations, like those of this asset manager with its tens of billions in assets under management, are being made by more and more investment houses on the Thames that do not (yet) have a branch in the European Union (EU). The post-Brexit period is a grey area for many of them as long as there is no separate agreement between the UK and the EU. But that may be a long time coming. Continue Reading
The (for the time being) final curtain in the Brexit drama is rising these days, but it does not look like a good ending for the British financial and fund industry. Until recently, the biggest opportunity seemed to be “Fish for Finance“. But that is unlikely to happen. British financial firms are sitting on dry land if they do not have their own branch in the European Union by now (read the whole article as a PDF). Until the cancellation of British Prime Minister Boris Johnson last Friday, “Fish for Finance” – a possible trade between fishing rights for EU fishing boats in British waters on one hand and access for British financial products to the European Union on the other – looked quite promising. Haddock for funds or cod for derivatives, so to speak. Continue Reading
The impending collapse of the Woodford Equity Income Fund (WEIF) in the UK may not only cost (ex-)star fund manager Neil Woodford his company. The crisis also casts a shadow over the increasingly popular illiquid investments, especially among institutional investors, and their supervision.
The case of Neil Woodford, who is currently holding British investors, the media and financial regulators in suspense, can be told from three perspectives: as a drama of the rise and fall of a former star fund manager, as evidence of the carelessness of supervisors, or as a harbinger of the difficulties of active asset managers when they juggle illiquid investments. Above all, however, it is a warning of how reluctantly the key players in the affair communicate.
So, what happened? Continue Reading
Unease within the British investment industry is increasing: Facing the threat of a „No Deal“-scenario there are continuous speculations about the extent of (anticipated) asset outflows due to Brexit, which companies are going to leave and how many employees they will take with them. Since the referendum the media, investment managers and national trade associations have their finger on the industry’s pulse. They predict: Small investment boutiques without any European representation will be hit particularly hard (article as PDF file) Continue Reading
It’s the year 2023 and Brexit negotiations have gone terribly wrong. As a consequence, the UK has dismembered itself, an exodus of firms from London to mainland Europe has taken place − and the Shetland Islands are now in third place behind Luxembourg and Ireland for the registration of new funds. A short story by Hagen Gerle, Gerle Financial Communications.
A picture from a family holiday in Cornwall, the 2020 stand-up metal award for ‘Best British Alternative Asset Manager (over 3 yrs.)’, a copy of a runners’ magazine – there weren’t many personal belongings left that Adam had to put in his cardboard box this morning. Most of the other stuff had already made its way into his small flat where the big removal boxes were piled up against the wall, or he had simply chucked them in the bin. ‘Travel light’, he told himself. ‘You’ll buy what you need in Helsinki.’ Continue Reading
An article about the differences between the British and the Germans when it comes to investing with quotes from an observer like Communications consultant Hagen Gerle who’s been living and working in the Southwest of England since 2011. Link to the article by Arne Gottschalck, editor of German business publication manager magazin (sorry, only available in German): “England 3, Deutschland 0“.