On 10 February 2022, HM Treasury (HMT) published its much anticipated Summary (the Summary) of responses received to its January 2021 Call for Input, Review of the UK Funds Regime.
The Simmons & Simmons response to that call for input can be found here and we are pleased that a number of our points have been taken on board by HMT in its proposals for the near term.
In our client note, we assess the key regulatory issues contained in the HMT Summary including its proposals in respect of:
- a possible new unauthorised contractual scheme vehicle
- Long-term Asset Funds (LTAFs)
- Qualified Investor Schemes (QIS)
- Investment Trust Companies
- speed to market
- distribution of capital and
- other proposals.
A separate article on the tax proposals can be found here.
What does Simmons think?
We welcome HMT’s overall response and the potential opportunity offered by the introduction of a possible new unauthorised contractual fund structure for professional investors and the various other initiatives aimed at improving the competitiveness of the UK industry.
We do feel, however, that the government has missed a trick in not prioritising a more thorough root-and-branch reform of the UK funds offering.
This was a potentially pivotal moment in the development of the post-Brexit UK asset management industry and, although there are encouraging signs of willingness to pursue improvements, the UK government appears to have had a failure of ambition that may see the sunlit uplands of a truly-competitive UK funds industry remain tantalisingly out of reach for future generations.
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