Alfi urges avoiding endless Brexit negotiatons
Alfi, the body for the Luxembourg investment fund industry, has urged relevant parties to avoid “prolonged negotiations” in order to diminish the impact of Brexit.
The organisation said Brexit is a business issue for asset managers and is subject to each manager’s business model and strategy, but the impact of the UK exit from the EU will depend on future political decisions and trade negotiations.
“In order to avoid uncertainty and to ensure that investors continue to be as protected as they are under EU regulation, it is essential that the period for negotiation is not prolonged and that a level playing field is maintained,” Alfi said in a statement.
Luxembourg-domiciled investment funds originating from UK asset managers represented 16.5% of the total assets under management in Luxembourg at the end of March 2016 – the second largest group after US asset managers.
“Several large UK asset managers have made Luxembourg an important part of their strategy for the global distribution of investment funds and have established important UCITS (and AIFMD) management companies in Luxembourg,” Alfi said.
“The Luxembourg fund industry has a very good relationship with the UK financial services industry and we will work to maintain these good relations,” it said.