George Osborne, the Chancellor of the Exchequer, has removed stamp duty on investment funds in a bid to boost the asset management sectors in the UK and come out in favour of a more constructive approach by the regulators.

The Treasury singled out asset management - along with such sectors as aerospace and infrastructure - as a sector capable of generating significant employment. In a statement, Osborne said: "I am committed to making the UK one of the most competitive places in the world for the investment management sector."