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Defense funds are seeking to benefit from Brexit and exploit a global deregistration movement by calling on the UK financial supervisor to waive reporting requirements for the sector.
According to the rules inherited by the EU, the British Financial Behavior Authority requires market transactions to be reported by both purchasing institutions, including protective funds, and sales institutions, such as investment banks.
Protection funds complain that this is an unnecessary duplication of efforts and are lobbying FCA to use as much as they no longer need to follow EU rules by applying for purchase institutions to report transactions.
The sector believes that political winds have moved in his favor as the United Kingdom Government is pressing regulators to lower the red ribbon in support of the country’s stagnant economy.
Donald Trump’s push for a wave of deregistration in the US is providing an extra impetus to seek a reduction in bureaucratic burden in the city of London.
“Reducing excessive and costly demands for managers while maintaining regulatory supervision will improve the withdrawal of the United Kingdom as a global center of financial services,” said Bryan Corbett, chief executive of the managed funding association, which represents a lot by the largest US defense funds.
The MFA said “requires FCA to remove shopping firms from the transaction reporting, as double reporting is duplicating, costly and inefficient”.
FCA gave the sector hope that it is likely to shorten reporting rules when publishing a discussion work in November, saying it was aiming to achieve “a transactions of transactions transactions adapted to the UK to reduce costs for businesses and to make our capital the most attractive markets ”.
The defender receives more than 7BN reports each year of transactions executed in British financial markets for over 20MN various reportable instruments, such as capital, future, total return exchanges and traded exchange funds.
The cost for the UK financial firms to report such transactions is estimated at more than £ 500m a year, according to a letter sent to FCA on Friday by Aima, a London -based defense -based trade body.
Adam Jacobs-Dean, a manager at Aima, said his members “routinely singled out the reporting of transactions as one of the most important compliance loads”.
“We strongly advocate for the removal of” purchase investment firms “from the scope of transactions reporting requirements.. On the basis that the sales firms with which those firms execute transactions in most cases also report those transactions,” he said .
Such an action “would neither reduce the quality of information available to FCA nor reduce FCA monitoring and supervision skills,” he said, adding that he would bring UK in accordance with the US report .
Jacobs-Dean also withdrew against FCA suggestion that it could extend reporting requirements beyond firms subject to so-called Mifid II rules, applying them to private capital and other investment firms subject to rules such as AIFMD and ucits.
In response to the Sir Keir Starmer’s call for pro-growth proposals, FCA said in a letter to the Prime Minister last month that it would “review the proportionality of reporting requests and remove excess returns, initially expected to benefit 16,000 firms”.
The regulator, who plans to publish proposals for changing his reporting rules later this year, told Financial Times: “We are committed to abolishing the unnecessary reporting requirements to support growth, as we have set in our letter . ”
