The United Kingdom government has announced plans to “ditch” onerous European Union retail fund rules as a matter of priority. This decision comes after the UK officially left the EU on January 31st, 2020, and is now able to make its own laws and regulations.
The EU’s retail fund rules, known as the Undertakings for Collective Investment in Transferable Securities (UCITS) directive, are designed to protect investors by setting minimum standards for fund management, risk management, and reporting. However, the UK government has stated that these rules are too burdensome for the country’s asset management industry, and that they stifle innovation and competition.
The UK’s decision to “ditch” these rules is in line with its desire to create a more business-friendly environment and to attract more investment to the country. The government has stated that it will work closely with the asset management industry to create new regulations that are more tailored to the UK’s unique market conditions.
The move is seen as a positive step for the UK’s asset management industry, which is one of the largest in the world. It is expected to lead to more competition, lower costs, and better returns for investors. It could also attract more foreign investment to the UK, as companies and investors will have more flexibility and fewer regulatory constraints.
The UK government has not yet announced a specific timeline for when the changes will be implemented, but it is expected that the process will begin soon and that new regulations will be in place within the next few years. This move is a clear indication that the UK is open for business and that the country is committed to creating a more competitive and dynamic economy.