Germany’s financial supervisory authority is opening its doors to British asset managers as the UK and EU prepare to negotiate the terms of Brexit.

BaFin plans to hold a Brexit workshop next month, aimed mainly at UK asset managers thinking about relocating to Germany.

The regulator said it would set out its administration and supervisory practice in relation to the asset management sector, including its licencing procedure for asset management companies, delegation issues, and marketing notifications from third countries.

The regulator said: “Brexit will likely have an impact on the regulatory and business environment of asset management companies and investment funds located in the UK, in particular in relation to cross-border business.”

Germany and other EU countries are vying to attract asset management business from the UK as a result of the country deciding to exit the EU. The French asset management association, AFG, for example, has been active in seeking to promote Paris as a hub.

According to IPE’s 2016* Top 400 survey of the world’s largest asset managers, €4.65trn of assets were managed in the UK at the end of 2015, compared with €2.81trn in Germany and €3.86trn in France.

There is a concern that asset managers in the UK will lose the ability to establish branches, or market and distribute funds freely throughout the European Union as a result of the country’s pending exit from the bloc.

The EU’s passporting regime allows cross-border activities once a firm has received regulatory authorisation in its home member state.

Other concerns, as noted in a recent Brexit guide from the CFA Institute, are possible restrictions on the management of assets from the UK for clients based in the EU, and reduced labour mobility.

In a February 2017 survey of CFA Institute members regarding Brexit, 70% of respondents in the UK said they believed it had caused the competitiveness of their market to deteriorate.

Over half of respondents expected firms with a strong UK presence to reduce that as a result of Brexit.

The workshop will be held on 27 June at BaFin’s Frankfurt offices.

*IPE’s 2017 Top 400 survey will be appearing in the June edition of IPE magazine