UK asset managers need to act individually and collectively if the industry is to maintain its global standing after the leave vote

24 June 2016

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Gill Lofts, Leader, UK Wealth & Asset Management at EY:

“UK asset managers need to act individually and collectively if the industry is to maintain its global standing after the leave vote. In the short term they need to defend their own business against market volatility and investor nervousness. We expect to see a drop in net new flows, and it’s possible there will be an outpouring from funds in to cash and near cash, if market shocks are high or sustained. At worst – if redemptions are high and volatile - this may create liquidity issues in funds.

“In the longer term, pulling together to make sure we get the negotiation and terms of exit right is going to be critical. UK firms would be adversely affected if they could not keep the current fund passporting and man co structures in place over the longer term. And non-European firms who are looking to set up in Europe are most likely to HQ on the continent, outside of UK, say, Lux or Dublin, unless we can make a compelling case for the UK.”