Whether the United Kingdom leaves the European Union on 29 March 2019 without a withdrawal agreement (a no-deal scenario) or whether there is an orderly exit with a withdrawal agreement in place, the UK will become a “third country” under EU law and will therefore lose the passporting rights available to UCITS, UCITS management companies and alternative investment fund managers (“AIFMs”) under EU legislation. We have been advising our clients on the implementation of their Brexit contingency plans, including advising on the establishment and authorisation of UCITS management companies, AIFMs and Super ManCos (that is, management companies with an authorisation under both the UCITS Directive and the Alternative Investment Fund Managers Directive (“AIFMD”)) in Ireland, including in many cases obtaining an additional individual portfolio management (“IPM”) authorisation. An alternative to establishing a management company is to appoint a third party management company or to use a third party platform. The implementation of these plans will ensure that UK investment fund managers will continue to have access to EU markets in a no-deal scenario.
Our Brexit tracker for Irish investment funds notes the latest Brexit-related developments impacting the Irish investment funds industry in reverse chronological order, allowing you to keep up to date on the key matters impacting the industry.