Posted on Jan 29, 2021, 11:17 AMUpdated Jan 29, 2021, 2:43 PM
New tax regimes and regulatory easing: the British government has just launched a major project to strengthen, thanks to Brexit, the competitiveness of its asset management industry. A sector which, with its 9.9 trillion pounds of assets under management (11.150 billion euros), still ranks first in Europe. And which, with its 113,000 employees, contributes 1% to the British GDP. “We understand that the British Treasury is worried, the British funds having lost on January 1 the European passport which allowed them to be marketed everywhere in Europe », Points out the general delegate of the French Association of financial management (AFG), Pierre Bollon.
A consultation document published by the British Treasury on January 26 launches several avenues for grooming. It is up to professionals to make their contributions by April 20. One of them would be to exempt mutual funds from all taxation. Another to re-examine the conditions of VAT, in order to favor the relocation to the United Kingdom of the administration of funds under British law. An activity which today employs 12,000 people in London, but also in medium-sized towns – regional centers that the Treasury intends to develop – but which is also largely relocated. Thanks to their attractive taxation, Luxembourg and Ireland in fact concentrate 57% of the direct debits of European funds (managed on site or in a third country), according to figures from EFAMA, the European association for the management of active. The Treasury itself recognizes that it would, for example, “Unrealistic” to want to repatriate massively across the Channel ETFs (listed index funds), these low-cost products very popular with investors.