Simon Davies, outgoing chairman of the IMA, says the biggest challenges facing the industry are getting people to save and ensuring the smooth introduction of a Europe-wide single market for asset management.
Speaking at the IMA’s AGM dinner last night, Davies highlighted two main challenges for the future.
The first is for the Government to encourage more saving in the UK. The announcement ISAs were to remain a permanent part of the savings landscape was welcomed, Davies said, while the Government's commitment to establishing personal accounts was heralded as a good foundation on which to build.
But Davies cautioned this was just a start, and said it would be important to ensure other aspects of government policy including tax, regulation and benefits work together to support a higher rate of saving.
The second challenge Davies highlighted was ensuring the Commission's proposals for a single market in asset management lead to an efficient and competitive market that will benefit both investors and the industry.
Davies concluded: "The UK is of course the premier asset management centre in Europe and we want to keep it that way. One area of vulnerability is that we only account for less than 10% of the authorised funds market. There is a real opportunity to grow this further if we have the right regulatory and tax environments.
“Government and industry can work together to make the UK market a stronger and more competitive force in Europe. With the help of Ed Balls a good process is under way between the Treasury and the industry, and we look forward to seeing the results."
Robert Jenkins, of F&C Asset Management, has taken over from Davies as IMA chairman. Peter Chambers, Legal & General Investment Management, William Nott, M&G and Keith Skeoch from Standard Life Investments were appointed to the IMA Board.
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