Insights / 17 September 2020
Brexit: No deal on the horizon
In a recent article from Funds Europe, Mark Latham discusses Brexit’s potential impact on the highly interconnected cross-border European funds industry. With the end of the UK’s transition period out of the EU drawing to a close very quickly and no trade deal yet to speak of, there are significant challenges that still remain.
Daniela Klasén-Martin, Group Head of Management Company Services, discussed one such challenge:
“Our model as a third-party management company is that we appoint initiators to be the portfolio manager and also the distributor, and in the UK they currently use a MiFID licence to perform that activity and distribute across Europe – but from the end of the year, they will not be able to use that licence.”
Daniela goes on to discuss how it is still unclear how to accommodate EU-wide distribution in a delegation mode structure and how firms involved in closed-ended funds are now in a rush to do as much marketing before the end of the year.