uk government

UK Government plans to develop digital fund for Blockchain

In a press release today the UK government has outlined a long term approach for enhancing the country’s future generation of investment management with one of the key areas focusing on blockchain technology.

The proposal named ‘Investment Management Strategy II’, includes six areas of growth including the development of Asset Management Centre’s of Excellence at various Universities across the UK. The core aim is to strengthen the UK’s investment management pipeline in order to make the country a world leader in Fintech. It would like to achieve this through a digital fund based around blockchain technology.

The UK is often seen as very attractive base for overseas firms who wish to make use of competitive corporation tax rates. The government hopes to further entice new firms and encourage relocation of core business through regulatory incentives which facilitate growth in the blockchain industry.

Employing just shy of 40,000 people and contributing to 1% of the UK’s gross domestic product, the Asset Management industry plays a big role in Britain’s economy.

The Economic Secretary to the Treasury, Stephen Barclay, said:

The UK is a world leader in asset management, and it is vital that we keep it that way. The new Strategy for the sector outlines how we will do this, and I look forward to working closely with the industry to fully realise it’s potential.

Chris Cummings, Chief Executive Officer of the Investment Association said:

We are delighted to welcome the government’s new, ambitious Investment Management Strategy. This strategy will give asset management firms, who collectively manage the pensions of millions of British households and hold the UK’s biggest listed companies to account, a roadmap to success through Brexit and beyond.

Together with the Asset Management Taskforce, this comprehensive strategy provides the opportunity for partnership between Government, industry and regulators to ensure the UK remains the leading European asset management centre. The forward-looking agenda brings a welcome focus on the critical success factors of tomorrow, including harnessing the fintech revolution, encouraging sustainable investment and ensuring a diverse and world-leading workforce.

Domestic excellence will help to boost the industry’s export and trade contribution as the UK looks to a new place in the world. This strategy means our industry will continue to deliver the best possible outcomes for savers and for the UK economy in the years to come.

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