Brexit could hit UK investment sector

Brexit co uld have huge ramifications for the UK’S investment industry, which manages more than £1.2 trillion worth of assets, a new report warned yesterday.

The annual survey by the Investment Association (IA) said the EU referendum result could ultimately dent the industry, which manages 37 per cent of all European assets – more than German, French and Italian industries combined.

“Whether the UK retains its position as a centre of excellence for asset management could be partly determined by whether overseas clients, particularly those located in mainland Europe, exhibit a preference post-brexit to repatriate their asset management activity within the EU,” the report said.

“It remains unclear what the relationship between the EU and the UK will be like postbrexit, but the decision to leave the EU may have ramifications for all industries.”

The IA said the survey results raise important questions over whether Brexit will have a commercial impact on the industry and regulatory environment, and whether firms will need to relocate staff or set up shop in the EU.

Chris Cummings, chief executive of the IA, said: “By serving as a ‘turntable of capital’, the investment hub enables its clients to benefit from economies of scale and unrivalled investment expertise while also providing lifeblood funding for capital markets.

“The industry is now considering the ramifications of Brexit and the focus (is) on seizing the opportunities being presented to grow the UK’S investment hub globally.” 0 Chris Cummings of the Investment Association