Insights / 05 May 2021

Jurisdictional Agnosticism in Wake of Brexit

Daniela Klasén-Martin

Daniela Klasén-Martin, Group Head of Management Company Services and Managing Director Luxembourg, was recently featured in International Investment where she discussed jurisdictional agnosticism in the wake of Brexit. Read her opinion piece below. 

Pre Brexit, the UK, Jersey, and Guernsey played host to half of European-focused private capital funds. By 2018 only a third stayed, 19% of these funds had moved to Luxembourg.

The passporting workaround for large funds lay in adopting a multi-jurisdictional approach via third party management companies. 

Jurisdictional agnosticism will continue to be essential in the wake of Brexit. Smaller funds will need to outsource for agnosticism to be economically viable. 

Cost is a diminishing factor for domicile decision making. Jurisdictions that place more emphasis on transparency and ESG factors are increasingly popular with investors and are better at keeping ahead of the regulatory curve.

Read the full article here.