Tuesday 25 September
IMA AGAINST RESOLUTION POWERS FOR ALL INVESTMENT FIRMS BUT SUPPORTS LEGISLATION FOR CCPs
In its response to the HM Treasury on the ‘Financial Sector Resolution: Broadening the Regime Consultation’, the Investment Management Association (IMA) disagrees with the extension of resolution powers to all investment firms.
The trade body which represents the UK asset management industry, raises questions over why some agency managers should be included, especially as the EU has not adopted this approach.
However the IMA fully supported the introduction of legislation for CCPs (Central Counterparty Clearing Houses) ahead of the EU, stating that all CCPs should be considered systemic.
Guy Sears, IMA’s Wholesale Director, said:
“HMT should be applauded for proposing a resolution regime for CCPs ahead of Europe. Given the UK’s position as a global asset management centre, the protection of client positions and margin must be a key objective of any new regime.
“But we disagree with the proposal to extend the resolution regime to firms not contemplated by the European proposals. Given the cost involved in preparing recovery and resolution plans, HMT have cast the net too wide by including agency asset managers. They are already proportionately regulated in the UK in relation to wind-down planning and their international competitiveness must not be diminished by overly cautious thinking on systemic risk.”
The full IMA response is available here.
For further information please contact:
Navdeep Sidhu, Press Officer
020 7831 0898 or 07843 517 618
Mona Patel, Head of Communications
020 7831 0898 or 07834 089332
About the Investment Management Association
- The IMA is the trade body for the UK's £4.2 trillion asset management industry (retail and institutional) which is one of the world's leading investment management centres.
- Our role is to represent the interests of the asset management industry to government and regulators both in the UK and internationally.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.