HM Treasury adopts Investment Management Strategy II

Published: 12 December 2017


HM Treasury has adopted an updated version of its Investment Management Strategy – The UK Investment Management Strategy II (IMS 2) – renewing and updating its original strategy from 2013. The IMS 2 contains six guiding principles: (i) taking a long term approach; (ii) supporting innovation; (iii) taking tough decisions; (iv) resourcing the industry; (v) close collaboration across Government; and (vi) working closely in partnership with industry. The IMS 2 also includes a number objectives, including to: enhance government /regulator dialogue with industry; promote a competitive and stable tax and regulatory environment; strengthen the domestic and international skills pipeline; advance the development of asset management FinTech solutions; support UK asset managers to be global leaders in innovative investment strategies (namely patient capital, social and impact investments, financing of green technologies and Islamic finance); and continue a coordinated international engagement and trade promotion programme. HM Treasury also will retain its quarterly Asset Management Taskforce meeting – chaired by Economic Secretary to the Treasury – at least until October 2019.

The IMS 2 sets out several specific goals, including to: continue to be able to establish a fund structure based on UCITS in the UK; ensure an immigration system that enables the UK economy to attract the brightest and best from across the globe; facilitate a domestic skills pipeline, including through Centres of Excellence at UK universities and apprenticeships, and enhanced diversity in the investment management sector. It also highlights the FCA’s “Project Innovate”, which includes a regulatory sandbox, direct FCA support, an advice unit, collaboration in RegTech and general encouragement.

Specific provision is made for cybersecurity and the Investment Association’s Asset Management Cyber Security Strategy and encourages stakeholders to participate in this work and to provide a new level of protection for asset management and FinTech firms. The strategy is intended, at a minimum to allow firms to: understand certain existing legal obligations and an evolving regulatory focus through GCHQ accredited training; understand fundamental IT and technology principles; monitor evolving threats, technologies and attack protocols; appreciate the data use and information work flows of the asset management industry; and simultaneously manage their employees’ training needs, their vendor controls and investors’ expectations.

HM Treasury also confirm that the UK will continue to dedicate resource to trade promotion and engage with overseas governments to enhance market access for UK firms.  In particular, HM Treasury and Department for International Trade will engage with asset management industry to better understand firms’ experiences of accessing overseas jurisdictions and their future priorities in the area.

If members have any questions or comments, please contact the Jennifer Wood.