Brexit asset management update

In this blog post we summarise the latest developments related to asset management.

EU Exit draft SI 

The draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 2) Regulations 2019 (SI) (with draft explanatory memorandum), which makes amendments to a number of financial services EU exit statutory instruments and to Commission Delegated Regulation (EU) 2015/61, has been published. The draft SI corrects errors identified in legislation after it was made, makes amendments to ensure consistency between EU exit instruments and introduces a transitional provision.

FCA TPR notification window extended 

The FCA has announced that, in light of the delay to the UK’s withdrawal from the EU, the notification window for the temporary permissions regime (TPR) will be extended to 30 May 2019, subject to further review by the FCA. The following TPR notification directions have been amended in light of the extended notification window:

• Temporary Permission Notification (FSMA);
• Temporary Permission Notification (UCITS);
• Temporary Permission Notification (AIFM);
• Temporary Permission Notification (emoney); and
• Temporary Permission Notification (payments).

The FCA has published a TPR notification guide for inbound passporting EEA investment funds.

FCA and ASIC MoUs 

The FCA has agreed two Memoranda of Understanding (MoUs) with the Australian Securities and Investments Commission (ASIC) regarding arrangements for cross-border cooperation and continuity of existing equivalence decisions once the UK leaves the EU. The MoUs cover trade repositories and alternative investment funds (AIFs) and will enter into force on the date EU legislation ceases to have direct effect in the UK.