Brussels warning to UK asset managers
Almost unnoticed, the European Commission last week issued a “notice to stakeholders” including managers of investment funds and investors, reminding them of the “legal repercussions which need to be considered when the United Kingdom becomes a third country.” The notice goes on to say that “UK entities will no longer be able to manage funds and market funds in the EU on the basis of their current authorisations”. A report by Ignites Europe, says the notice, which outlines scenarios of market shut-out for UK fund firms, strict criteria for delegation, and even requirements for asset managers to review their disclosures and eligible investments, is “ one of Brussels’ toughest Brexit warnings to the asset management sector to date.” It quotes Ashley Kovas, senior regulatory intelligence expert at Thomson Reuters as saying that the commission’s note “brings home the particular implications Brexit has for the fund management industry.”
Citigroup announces significant London investment
American bank Citigroup is to establish an innovation centre in London, the Financial Times reported on Sunday. The FT says the decision is “one of the first strategic investments by a big US bank in the British capital since the Brexit vote.” The bank’s chief executive Officer for Europe, the Middle East and Africa, James Cowles, is quoted as saying that Citi will initially hire 60 technologists for the new centre, which will also house the EMEA unit of Citi ventures and employees from across the company's businesses. “Citi continues to invest in London, a key hub for both cutting edge technological talent and some of our largest investor clients,” Cowles said. Citi has, however, previously announced that Frankfurt would be its new post-Brexit EU headquarters. The bank is expected to move some 250 London staff to Germany.
British minister thinks transitional deal is likely
Britain's Secretary of State for International Development Penny Mordaunt said on Sunday she believed the government would be able to strike a transitional Brexit deal with the European Union. “It’s in our interests and it’s in the EU’s interests. I think common sense will prevail,” Reuters reports her as saying.
Football: Senegal friendly ahead of World Cup
The Senegal Football Federation has confirmed that the Teranga Lions will play Luxembourg in a friendly international on 31 May, ahead of the World Cup in Russia in June. Senegal qualified for the World Cup finals by easily winning Africa Group D with 14 points from 6 games, including a 2-1 victory over South Africa in a match that was replayed after FIFA ruled that poor refereeing decisions had helped South Africa to a 2-1 win in the original match. The Red Lions will also play Georgia on 5 June. The Georgians finished 5th in Group D of qualifying for the World Cup with just 5 points, behind winners Serbia and runners-up Ireland.