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HM Treasury Publishes Renewed Investment Management Strategy

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:

  1. Skills: Establishing an asset management taskforce to enhance dialogue between government, regulator and industry.

  2. Tax and regulatory environment: Promoting the UK’s tax and regulatory environment with a view to facilitating innovation and growth within the industry.

  3. 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.

  4. Financial innovation: Using financial innovation to develop solutions such as a blockchain-enabled digital fund and the Asset Management Cyber Security Strategy.

  5. Innovative investment strategies: Providing support to UK asset managers to develop innovative investment strategies when meeting changing investor demands.

  6. 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.

©2018 Katten Muchin Rosenman LLP


About this Author

David A. Brennand, Financial Services Lawyer, Katten Muchin Law Firm

David Brennand is a partner in the Financial Services practice in Katten Muchin Rosenman UK LLP. David provides advice to a wide range of clients active in asset management on a broad spectrum of matters pertinent to their operations, with a particular focus on advising asset managers on the structuring and ongoing operation of hedge and other alternative fund structures investing in a diverse range of asset classes.

As well as advising on fund structuring and their ongoing operation, David's expertise also extends to advising asset managers and...

Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of financial services groups, and structuring and marketing of investment funds. Neil is a frequent speaker at industry conferences regarding developments in UK financial services regulation, including the AIFM Directive, short selling and market abuse.