March 28, 2018 / 2:28 PM / in a year

FCA fund supervision chief plays down delegation concerns

LONDON, March 28 (Reuters) - One of Britain’s top asset management regulators on Wednesday said he had seen little evidence of major disruptions to companies’ operations amid concern European rules on running funds across borders could be toughened as a result of Brexit.

Rules around so-called delegation currently allow managers to sit in one country and direct investments in a fund legally based in another, but some in the industry are concerned this could change as Britain exits the European Union.

Nick Miller, head of investment management supervision at the Financial Conduct Authority, said the regulator supported the existing rules and he had yet to see evidence of a tougher approach by regulators on the continent.

“The FCA’s view is really clear on this... delegation is a completely established norm; we think it works well when underpinned... by strong regulatory standards and supervisory cooperation,” he said in a speech at a conference in London organised by trade body the Investment Association.

“I would also question the extent to which this is genuinely at risk here. There is a lot of discussion about it but I think, actually, as I understand it from firms, we’re seeing less disruption, actually, on the ground, as would perhaps be implied by the headlines.” (Reporting by Simon Jessop, editing by Maiya Keidan)

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