IMA calls for change in UK banking regulations

The private banking wealth management sector remains strong despite the financial crisis, an industry group has said.

According to the Investment Management Association (IMA), a stable tax environment and sensible regulations will keep the UK attractive for investors over the long term.

However, asset managers polled by the group also affirmed the need for reforms to the banking sector in the wake of the credit crunch - in particular, a greater separation of investment and commercial banking units.

Richard Sunders, IMA chief executive, said: ’It has been a challenging year for the industry and while asset managers are weathering the storm, there will be a number of lessons to learn.

’Overall, the UK can still be considered a favourable location for asset management as long as the tax regime remains stable and predictable, and the regulatory environment for investment management is not adversely impacted by attempts to deal with what was in essence a banking crisis.’

IMA data also show that the total assets under management by the firm’s members fell from £3.4 trillion in 2007 to £3 trillion in 2008.

Of this total, £500 billion was held in offshore private banking funds. ADNFCR-2318-ID-19264253-ADNFCR