A new threat to Scotland's asset management industry

Scotland's asset management industry has stood tall as a (relative) beacon of health throughout the financial crisis, but an impending piece of legislation could threaten future growth.

Scottish Financial Enterprise (SFE) has raised concerns that the EU's AIFM Directive, which has had its fair share of detractors elsewhere, will negatively impact the investment management industry.

The organisation says that it would both affect the industry's customers - savers, pension holders and investors - and restrict Scotland doing business in Asia, which is considered one of its strongest competitors.

"While it would have a negative impact in the City, it could do even more damage in Scotland because we have a particular strength and expertise in investment management. It is not better regulation - just more, overlapping, regulation that would bring restrictions without benefits," says Owen Kelly, chief executive of SFE.

SFE has called for amendments to the legislation, at a time when the asset management industry in Scotland is showing signs of growth again.

Standard Life Investments is expanding, while Scottish Widows Investment Partnership continues to recruit for front office roles following the latest addition to its fixed income team.

Glasgow-based Ignis Asset Management has also unveiled Tim Roberts as chief operating officer, having recently appointed Chris Fellingham as chief investment officer of fixed income.

Baillie Gifford has also promoted three employees to partner - Richard McGrail, Will Sutcliffe and Nick Thomas.

"We've been very busy with investment management roles," confirms Richard Fletcher, managing director of Scottish headhunters Fletcher Jones. "As well as larger firms, we've seen roles for senior front office professionals within boutique operations. There's been a particular focus on leadership and global equities roles."