UK fund managers think the government lacks the expertise to deliver a Brexit deal which will benefit the industry.
A report by consultancy firm MJ Hudson found that four in five fund managers fear the UK negotiation team does not have sufficient understanding of asset management.
Based on a survey of more than 300 fund managers and investors in the UK, Europe and the rest of the world, some 77 per cent of fund managers and investors surveyed said the government should have consulted the industry before negotiations began.
Matthew Hudson, chief executive at MJ Hudson, said: ‘The ability to provide financial services from the UK into the EU is critical, not only to maintain the UK’s position as the leading asset management centre in Europe but also as significant revenue generator for the economy.’
Latest figures from the Investment Association show that UK fund managers run some £5.7 trillion, and manage more than 36 per cent of European assets.
A study from the London School of Economics estimated that as much of £3 billion of the £24 billion of revenue generated by UK managers could move outside the country after Brexit.
Fund managers surveyed by MJ Hudson said just three of the government’s 12 negotiating priorities would be beneficial to the industry.
These included the establishment of a free trade agreement, maintaining rights for EU nationals in Britain and British nationals in the EU, and providing certainty throughout the negotations.
Mr Hudson said: ‘As the UK government and the EU enter Brexit negotiations, it is not too late for the asset management industry to be consulted.’
Mike Deverell, investment manager at Equilibrium said: "The financial services sector needs to be consulted before any deal is agreed.
"The two main issues which affect advisers are whether they will be able to continue giving advice to clients who live elsewhere in the UK, and what the rules will be around investing in funds based in Europe."
