The law of 8 April 2019, the so-called Brexit Law, has granted power to the Luxembourg supervisory authority (CSSF) to extend the use by UK managers (UK Managers), managing Luxembourg AIFs and/or UCITS (Lux Funds), of the EU passports under the AIFMD and the UCITS Directive in case of a no-deal (hard) Brexit.
In a press release of 15 July 2019, the CSSF has informed UK Managers that want to continue to manage Lux Funds that, as a first step, they will have to notify the CSSF of their intention to do so by 15 September 2019 (an ad hoc notification website is available as of today). As a second step, such UK Managers will have to file with the CSSF either an application for authorization under the relevant directive(s) or a notification or information on the planned next steps in view of a loss of the passporting rights (such as for instance, a change to a manager of another EU country). This application will have to be received by the CSSF not later than 31 October 2019.
Thereupon, the CSSF might allow UK managers, on a case-by-case basis, to continue their activities for a period not exceeding 12 months (i.e., less than the maximum 21 months contemplated by the Brexit Law) after the day on which the no-deal Brexit will happen. Such transitional regime will only be available to UK Managers that have respected the prementioned deadlines of 15 September and 31 October.
These notifications and/or applications will have to be undertaken with the CSSF regardless of any prior communication with the CSSF on a hard-Brexit plan.