Brexit is also intensifying competition between global financial centers in financial market regulation. BVI sees this as fundamentally positive because it can be a corrective to overregulation in the EU. However, BVI rejects downward regulatory competition. BVI would like the German government to show greater appreciation of the financial sector as an important location factor for Germany and to do more to reduce overregulation in the EU. If Germany is to play a leading role in the European and global financial market, the government must develop a more positive basic attitude toward the financial industry and set the course for greater competitiveness.
What does Brexit mean for investors?
Investors in Germany who are invested in English funds can continue to hold their investments. Whether they are allowed to make new investments in these funds depends on whether the English fund company has gone through a corresponding notification procedure with the German supervisory authority BaFin. The fund company can provide information on this; in addition, the "Investmentfonds-Datenbank" (investment fund database) can be found on the BaFin homepage, which provides information on sales authorizations for third-country funds in Germany.
What does Brexit mean for portfolio management?
BVI has successfully lobbied for cooperation between the EU27 authorities and the UK financial regulator, so that outsourcing of fund management to London, for example, will still be possible. The impact on investment universes is also limited. Funds have always been allowed to invest in third countries under certain conditions, and this will also work with the UK.