IIMI, the boutique asset management think tank, has called upon the Treasury Select Committee to include its representatives in any consultations and working parties associated with the Committee’s inquiry into the future of the UK’s financial services once the UK has left the EU. The full written submission, entitled “Carpe Diem: Advice and Opportunities from the Boutique SME Asset Management Sector to the Future of Financial Services”, can be found here.
The Treasury Select Committee examines what the Government’s financial services priorities should be when it negotiates the UK’s future trading relationship with the EU and third countries. The Committee launched its inquiry in January 2019 and invited stakeholders to submit written evidence in response.
The importance of SMEs to the broader economy is widely recognised. It is IIMI’s belief that its members – which are often manager or partner owned, with a distinct culture and propensity for co-operation that promotes innovation, client-focus and thoughtful risk-management practices – share characteristics, and support needs, with the broader SME sector.
The political and regulatory response to the Global Financial Crisis led to a focus on larger firms and the banking sector, and reforms implemented in response have sometimes led to unintended consequences, such as increased barriers to entry. Now that ten years have passed, and with the UK’s focus on opportunities for the future, IIMI submits that it is now time for an alternative, bottom-up approach that draws from the wisdom and efforts of the SME sector.
Drawing upon its past work, IIMI shows how its members offer a distinct and important contribution to the debate about the future of financial services, concluding that any consultations and working parties must include their representatives to give the optimal outcome for the broader economy and society.
The Unique Perspective of Boutique SME Asset Managers
IIMI’s submission provides proposals for the future direction of financial services through the lens of boutique asset managers, with a focus on the following areas:
- Alignment of interest, culture and performance
- Liquidity transformation
- Broad-based innovation and the power of clustering
- Stewardship and patient capital
- Proportionality and incubation in regulation
“Boutiques, such as NCI’s members, are the SMEs of the asset management industry and are an important cluster of such activity for the UK and global economy. They promote innovation in the broadest sense – with corollary benefits for society – through economic growth, employment and global trade in services. As such, NCI believes that government and regulators best serve their broad constituencies by recognising and listening to the perspective and proposals of boutique firms: our members certainly welcome the opportunity to contribute to the debates ahead.”Jamie Carter, Chairman of IIMI