Brexit not the only reason UK funds are moving staff

Author: Olly Jackson | Published: 21 Feb 2019

UK investment firms are moving senior personnel away from the UK and into continental Europe not just because of Brexit, but also because of the evolving regulatory and deal-making landscape, market sources told IFLR.

"I’ve seen firms bolster their offices in mainland Europe," said an unnamed M&A partner at a global law firm. "Not just in headcount, but also by strategically placing decision-makers in places such as Paris, Munich and Luxembourg to enable them to continue as a European investment platform."

This is partly due to Brexit, but also a reflection of the evolving regulatory landscape, as well as some deal-making becoming more regionalised.

Landmark regulation for investment firms may encourage many to relocate senior decision-makers outside of the UK. Regulations such as the Alternative Investment Fund Managers Directive (AIFMD) require the fund manager to actively manage the fund itself. If the fund manager was established in Luxembourg, for example, which...