UK unveils future working group to ease investment in productive finance

On the 11/23/20 at 7:51AM

The British Treasury, the Bank of England (Bank) and the FCA on Friday announced the future establishment of an industry working group to facilitate investment in productive finance.  By investment in productive finance, the institutions refer to investment that expands productive capacity, furthers sustainable growth and can make an important contribution to the real economy (eg. R&D, tech, infrastructure, unlisted equities).

The working group will investigate challenges and potential barriers to investment in productive finance assets in the UK and will rely on previous work achieved on this subject, including the Treasury’s Patient Capital Review in 2016 and the Asset Management Taskforce’s UK Funds Regime Working Group’s Long-Term Asset Fund (LTAF) proposal in 2019. 

The working group will be co-sponsored by the economic secretary to the Treasury; Andrew Bailey, governor of the BOE; and Nikhil Rathi, chief executive of the FCA. It will include various industry players such as banks, asset management firms, pension funds and insurance companies, corporates, infrastructure firms, wealth managers, investment platforms and trade associations representing relevant sectors and markets. 

“Membership will be by invitation from the Treasury, the Bank and the FCA who will determine the final membership against a set of transparent criteria, including market footprint in UK, relevance to the mandate of productive finance, contribution to overall representativeness to the group, and engagement with productive finance issues. Further details will be announced in coming weeks,” the institutions said in a statement.