UK Legislation Addresses Brexit Implications of Alternative Investment Fund Managers Directive

12 October 2018
View Debevoise Update
Key takeaways:
  • The UK government has released a draft of the legislation that will apply to UK and European Economic Area alternative investment fund managers in the event of a “hard Brexit”.
  • In the absence of the financial services “passport”, the government will introduce a temporary permissions regime to enable EEA managers to continue to market their funds into the UK – so long as the fund is established and marketed in the UK prior to Brexit.
  • The legislation also establishes the scope of post-Brexit supervision of UK fund managers, covering the transfer of functions that were previously exercised by the European Commission and ESMA, the European Regulator, to the UK Treasury and the FCA, and limiting the FCA’s supervision to activities conducted in the UK only.