Brexit Asset Management Update

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

EU Exit: FCA extends duration of TTP directions

The FCA has updated the draft transitional direction and draft prudential transitional direction (with explanatory note) under its Temporary Transitional Powers (TTP). Key updates include:

• extending the proposed duration of the directions from 30 June 2020 to 31 December 2020;
• updating the provisions relating to prudential requirements to reflect new HM Treasury (HMT) legislation and FCA exit instruments published since 29 March 2019;
• revoking certain directions in relation to payment services, provided by EEA credit institutions in the financial services contracts regime, as these are no longer needed because of legislative amendments made by the Government; and
• applying a standstill direction to allow EEA Central Banks and the European Central Bank (ECB) to continue to rely upon their status as exempt persons until 31 December 2020.

The directions would only come into effect on exit day if the UK leaves the EU without an implementation period. The FCA does not expect to make further significant changes to the draft directions.

Herbert Smith Freehills' updated Brexit Legal Guide launched

Throughout the Brexit process our team at Herbert Smith Freehills have worked across our firm to help clients in all markets and parts of the world in preparing for this major change.

This updated Brexit Legal Guide addresses the legal position if the UK leaves the EU with or without a deal and picks out the key pieces of legislation that will soon be in force if the UK leaves the EU without a deal. Please see our sector-specific section in relation to banking and investment firms here.

If you would like to discuss specific arrangements for support through the risk of a no-deal exit or on dispute risks that may arise, or on any other questions or challenges you have, please do contact your regular Herbert Smith Freehills relationship contacts, or otherwise any of our experts.