Complying with European Union regulations costs British asset managers $3.13bn a year and the EU should find ways to cut managers' costs when they sell their funds across the bloc, a report said on Monday.
Reuters reports that EU regulations allow fund managers to sell their products across national borders, which is positive for both the asset managers and investors, the report from think-tank Open Europe and fund management trade body New City Initiative said.
But it said the start-up and running costs of the so-called 'passport' system were a deterrent for some fund managers.
'The EU should ensure that European asset managers are not bogged down by disproportionate EU regulation and can take full advantage of the single market without facing extra costs when distributing their funds across the 28 EU member states', the report said.
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