On December 6, Her Majesty’s Treasury published a report setting out the UK government’s renewed long-term investment management strategy. This follows the announcement by the UK Chancellor of the Exchequer, Philip Hammond, in his Autumn 2017 Budget on November 22, that the government would be publishing its new strategy to “ensure that the UK asset management industry continues to thrive and deliver the best outcomes for investors and the UK economy.”
The government originally launched its strategy in May 2013, focusing on enhancing the UK’s attractiveness as a center for fund domicile. Having delivered the policy initiatives promised by the 2013 strategy, the UK government has revisited its objectives and plans for achieving them.
Six core principles underpinned the government’s approach to the 2013 strategy. They have been reviewed and updated to reflect the current economic environment and focus on the following six areas for growth:
- Skills: Establishing an asset management taskforce to enhance dialogue between government, regulator and industry.
- Tax and regulatory environment: Promoting the UK’s tax and regulatory environment with a view to facilitating innovation and growth within the industry.
- Skills: Strengthening the UK talent pipeline, such as by working with firms to build a diverse talent pool and supporting the investment management industry in establishing asset management centers of excellence at UK universities.
- Financial innovation: Using financial innovation to develop solutions such as a blockchain-enabled digital fund and the Asset Management Cyber Security Strategy.
- Innovative investment strategies: Providing support to UK asset managers to develop innovative investment strategies when meeting changing investor demands.
- International engagement: Working with international partners to attract overseas firms to locate in the UK and enhance market access for UK firms overseas.
Alongside the government’s investment strategy, the FCA has conducted an asset management market study to understand how UK asset managers compete to deliver value to retail and institutional investors, as previously reported in the Corporate & Financial Weekly Digest edition of June 30, 2017.
HM Treasury’s report is available here and Annex A to the report sets out details of the 2013 strategy.
HM Treasury’s Autumn Budget 2017 is available here.