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
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...