In the last issue (issue 10) of the Buy-side Perspectives, K&KGC mentioned that authorities and buy-side associations within the remaining EU27 countries are incentivising UK based asset management firms to relocate functions from London to EU countries post Brexit. The Financial Times reported on 22nd November 2017 that the British Chancellor Philip Hammond (pictured right) has now detailed a new initiative to bolster the UK’s 7 trillion GBP investment management sector. The article specifies further “As part of major tax changes contained in its first strategy, the government abolished the so-called schedule 19 stamp duty reserve tax, which was identified by asset managers as a major deterrent to locating funds in the UK.” 
K&KGC believes the UK government also needs to instruct the UK FCA, known for its diligence, to ease its pressure on the asset management industry to make it more compelling for asset management firms to retain their UK base. As detailed in the trade and transaction reporting article (page 10), the French, German and Swedish buy-side associations and regulators have given many asset management firms an exemption from transaction reporting. 

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Asset Management firms reportedly* considering staff transfers and moves from London by transfer location: