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Scottish fund firms face multi-million pound bill for independence

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Scottish fund firms face multi-million pound bill for independence

Scottish fund managers would have to pay millions for a new regulator if independence from the UK goes ahead.

Owen Kelly, chief executive of Scottish Financial Enterprise said an independent Scotland would require a whole new legal and regulatory frame work, which would create difficulty for Scots-based funds, the Financial Times reports.

‘A Yes vote would require an additional financial regulator with hundreds of staff,’ said Kelly. 'The cost would run into millions and have to be paid for by the industry in Scotland.’

He said fund managers would need to tailor products for a new tax regime and construct a brand new consumer protection and regulatory regime.

‘Some changes will be necessary if fund managers cease to be in the same legal jurisdiction as the City of London, and 90% of their customers.'

Scottish fund groups account for 4,000 jobs and £520 billion of assets. Around 25% of assets managed by UK firms are by Scottish funds groups.

On 18 September, voters in Scotland will be asked: 'Should Scotland be an independent country?'

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