Regulators and government bodies within the UK are questioning the suitability of fund regulation within the European Union, according to transcripts from the Treasury Select Committee and reports in the Financial Times.
As part of the Brexit agreement, the UK said EU fund regulation would be considered "equivalent" until the end of 2025. As a result, EU-based funds can still use passports to sell to UK investors. However, as the deadline approaches the "equivalence" regime looks under threat. This would mean that EU fund managers may need to go through regulatory hurdles, offer UK-based investor structures or stop offering some products in the UK. In a Treasury Select Committee on 16 January, Bank of England governor Andrew Bailey stressed concerns around money-market funds. Money-market funds cau...
To continue reading this article...
Join Professional Adviser
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes.