On December 6, 2017, HM Treasury published the second U.K. Investment Management Strategy which sets out the U.K. Government's long-term strategy for ensuring that the United Kingdom remains a globally competitive location for asset management. The Government believes that action should be taken now to respond to the challenges and the opportunities for the asset management industry arising out of Brexit, and that this is the best time to renew the 2013 Strategy, which focused mostly on fund domicile issues.

The objectives of the U.K.'s Strategy include, among other things, enhancing the dialogue between the Government, the Financial Conduct Authority and industry, promoting the United Kingdom's competitive and stable tax and regulatory environment, advancing the development of asset management FinTech solutions and continuing a coordinated international engagement and trade promotion program. The Strategy sets out the outputs to achieve these objectives, such as enhancing communication between stakeholders, identifying opportunities to boost the United Kingdom's competitiveness and encouraging the FCA to continue its work on the Asset Management Hub, Project Innovate and proposals for making the U.K. asset management industry more competitive. The Government commits to ensuring that United Kingdom asset managers will continue to be able to establish fund structures based on UCITS in the United Kingdom following Brexit.

In addition, the Government supports the work of the Investment Association to establish a digital fund using blockchain as well as an asset management cyber security strategy. Following the success of the International FinTech conference 2017, the Government will host a second conference in the first half of 2018.

On the international agenda, the Government wants to reduce barriers to market access and intends to work with the FCA to pursue the establishment of mutual recognition of funds agreements, in particular for certain target market jurisdictions. The Government also commits to preserving the ability to delegate portfolio management of assets across jurisdictions.

The U.K. Investment Management Strategy II is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/665668/The_Investment_Management_Strategy_II.pdf .

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