More than seven in 10 in­sti­tu­tional in­vestors see ‘hard’ Brexit, new re­search shows

Malta Independent - - NEWS -

More than seven in 10 (73%) in­sti­tu­tional in­vestors be­lieve Brexit will be ‘hard’, in­clud­ing 29% who be­lieve it will be ‘very hard’, new re­search by Man­ag­ing Part­ners Group (MPG), the in­ter­na­tional as­set man­age­ment group, re­veals.

More than four out of five (82%) also be­lieve the num­ber of UK-based fi­nan­cial ser­vices firms gen­er­ally seek­ing to es­tab­lish sub­sidiaries in the European Union will in­crease over the next three years due to Brexit. While 44% be­lieve that UK as­set man­agers specif­i­cally will prob­a­bly get to pass­port their funds into the EU af­ter Brexit, around 30% be­lieve this will not hap­pen.

The full find­ings of the re­search will be an­nounced at the Fi­nance Malta 10th An­nual Con­fer­ence due to be held in Malta on 17-18 May 2017. MPG be­lieves that one of the big­gest ben­e­fi­cia­ries of Brexit will be Malta be­cause of its EU mem­ber­ship, its ef­fi­cient reg­u­la­tory and le­gal en­vi­ron­ment and its highly ed­u­cated, English-speak­ing work­force.

Jeremy Leach, Chief Ex­ec­u­tive Of­fi­cer at MPG, com­mented: “Although a size­able mi­nor­ity in our sur­vey be­lieve UK as­set man­agers will be able to pass­port their funds in the EU af­ter Brexit I think this will be un­likely – cur­rent mem­bers of the European Eco­nomic Area such as Switzer­land, Liecht­en­stein and Nor­way do not have this priv­i­lege.

“As such, many as­set man­agers and other UK fi­nan­cial ser­vices com­pa­nies will look to es­tab­lish a sec­ondary en­tity some­where in Europe post-Brexit and Malta should cer­tainly be on the list of se­ri­ous op­tions. Our sur­vey also showed that re­spon­dents be­lieve the most im­por­tant con­sid­er­a­tions for those UK com­pa­nies look­ing to set up an­other op­er­a­tion else­where are a com­pre­hen­sive le­gal and reg­u­la­tory frame­work (78%), fol­lowed by the tax regime (52%) and eco­nomic sta­bil­ity (42%). Malta is ex­em­plary un­der all of th­ese cri­te­ria.”

Ken­neth Far­ru­gia, Chair­man of Fi­nance Malta, said: “Malta’s propo­si­tion as an in­ter­na­tional fi­nan­cial cen­tre has con­tin­ued to en­joy mo­men­tum, as ev­i­denced by the sus­tained growth ex­pe­ri­enced in 2016 and the con­duit of in­ter­na­tional busi­ness oper­a­tions cur­rently seek­ing an in­vest­ment ser­vices li­cence through the Malta Fi­nan­cial Ser­vices Au­thor­ity.

“This suc­cess of Malta’s fi­nan­cial ser­vices in­dus­try has been driven by a num­ber of fac­tors, in­clud­ing the pres­ence of a com­pre­hen­sive reg­u­la­tory le­gal and frame­work, the work ethos and skills of the hu­man re­sources in Malta, the ac­ces­si­bil­ity to the Reg­u­la­tor and its pro-busi­ness ap­proach, Malta’s cost com­pet­i­tive­ness as well as po­lit­i­cal and eco­nomic sta­bil­ity.”

Joe Portelli, Chair­man of the Malta Stock Ex­change, added: “Malta of­fers a highly com­pet­i­tive, cost-ef­fec­tive so­lu­tion for any com­pany look­ing to es­tab­lish it­self within the EU. We are a prag­mat­i­cally well-reg­u­lated, English-speak­ing fi­nan­cial cen­tre with a hard­work­ing and ed­u­cated work­force. Set­ting up in Malta can be done rel­a­tively ef­fi­ciently and highly cost ef­fec­tively, with costs be­ing con­sid­er­ably lower than other European domi­ciles.”

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