There is no safe haven yet for financial services in terms of Brexit, but the European Securities and Markets Authority’s (ESMA’s) agreement with the UK Financial Conduct Authority (FCA) gives some clarity, according to one panellist at this year’s Fund Marketing & Distribution Europe Conference.
ESMA’s agreement has initiated a framework for supervisory cooperation between ESMA, the EU 27 national competent authorities and the UK FCA, in the event of Brexit. The signing was held last week.
The panellist indicated the critical role the FCA plays on both a national and international level. She said: “UK firms are a loud and welcome voice at the table right now.”
She added: “The FCA plays a huge role—writing legislation, managing incoming regulations purely for solely regulated FCA firms.”
The panellist went on to say that she knew a European based investor who had just invested in a private equity fund within the UK.
She said this indicated “a show of confidence in the UK market and indicates London isn’t going away in terms of being a hub for the financial industry”.
She affirmed: “London remains on the map. London remains the centre of excellence.
There is an innovative and positive outlook for London.”
Brexit was also mentioned in the following panel, exploring the UCITS landscape.
Panellists mostly agreed that Brexit could ultimately limit UCITS sales across border funds, to which one panellist affirmed, could lead to a more bifurcated market across Europe.
She added: “Where Brexit is least helpful is it will be harder to get a UK voice around the legality table. We [the UK] may no longer have that loud voice for decision making.”
Another panellist reminded delegates that post-Brexit, “UK UCITS will qualify as AIFs in the case of a ‘no deal’ scenario. And that’s something to consider”.
