UK prime minister David Cameron's promise to hold a referendum on Britain's membership of the European Union could have negative consequences for the country's asset managers, say consultants.
Many UK managers get a significant proportion of their business by managing assets for European investors via investment funds domiciled in the EU, such as in Luxembourg. If the UK left the EU, these relationships could be under threat.
“A UK asset management industry outside of Europe may find itself facing obstacles to the continued management of assets for EU based investors,” says Rob Mellor, hedge fund leader at professional services firm PwC. “This is a fundamental risk to the growth of the industry.”
Cameron says he will hold a referendum on the UK's membership of the EU if his party is returned to office in the next general election.
European leaders were almost unanimous in calling for the UK to remain an active member of the EU.
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