Brexit Update 13 March 2019
Posted on 13 Mar 2019
On the 11th March Laven’s consultants Manon Anglade and Matti Pekkola attended the FCA Brexit Briefing. The FCA shared their expectations for authorised firms following 29th March and their advice to firms which are making preparations for Brexit.
Firstly, the FCA are expecting to see evidence from regulated firms that they have taken reasonable steps to prepare for Brexit/No deal. For firms to do nothing and wait it out would not be a “reasonable step” in their view.
Currently firms can market products throughout the EU including the UK under MiFID, AIFMD or UCITS directives. The big issue is that if a No Deal transpires – passporting regimes will end. The FCA have worked with the treasury and BoE to put in place transitional agreements to prepare for this eventuality. The temporary permissions regime ‘TPR’ was created to provide a ‘temporary’ solution whereby EEA-based firms currently passporting into the UK and EEA-domiciled funds that market in the UK under a passport are able to continue their activities until an agreed landing point.
Ahead of an eventful couple of days there are multiple possible outcomes which firms will need to prepare for. Amongst all this uncertainty, Laven has partnered with a Luxembourg Asset Management platform called Fuchs & Associes Finance S.A. Laven has set up a new company in Luxembourg which will become a tied agent of Fuchs & Associes Finance S.A. – A MiFID firm authorised and regulated by the CSSF (“Fuchs MiFID”).
The benefit of this solution is that whatever the outcome of the next couple of days, Laven will ensure that your business can continue to distribute in the EU using our tied agency arrangement thus ensuring as much as possible business as usual. If you would like to speak with the Brexit team please do not hesitate to get touch in touch via email, [email protected] or call us on +44 (0)20 7838 0010.