The association that is representing the asset managers in Germany has urged for “unhindered access” to the investment services that are provided by the City after the United Kingdom withdraws from the European Union.
The German Investment Funds Association (BVI) represents the asset management sector in Germany. In a policy paper, it stated: “proper and unobstructed” access to London investment services was crucial to the industry.
The paper continued: “The importance of such access will significantly increase in the event of Brexit.”
As reported by the Financial Times, the BVI also urged for fund managers in Europe to retain the access to clearing and trading facilities that are in London after Brexit due to the gaps in the infrastructure in the European Union.
The call comes after the accusation of Philip Hammond, the British Chancellor, that the European Union was attempting a land-grab of the Square Mile in his Mansion House address during the past week.
Hammond made use of his speech to slam the so-called enhanced equivalence regime that was suggested by Brussels.
Hammond stated: “These proposals have nothing to do with equivalence and everything to do with an ambition to force the location of business into the EU.”
He added: “So although I have heard talk of ‘enhanced equivalence’, I have not yet seen a credible proposal for what it might mean or a clear articulation of how it might work.”
The head of City watchdog the Financial Conduct Authority (FCA), Andrew Bailey, has also urged for a mutual recognition regime for the financial regulation post-Brexit.
Bailey disclosed that such as regime was “eminently achievable” and rejected the calls for a less integrated relationship that are based on equivalence.
Bailey stated: “The current EU equivalence regime, well-intended though it is, doesn’t best suit any of the parties going forwards. Mutual recognition would be a better way to establish the steady state between the UK and the EU in the future.”