Many confusions in these first weeks of 2021 following the Brexit date. In respect to many requests and discussions in the past weeks with our clients, we would like to make an update in relation to the access to the UK market for non-UK firms/funds, including EU/EEA players.
This post aims at providing a last updated situation regarding the marketing of EEA funds in the UK.
As you probably know, the UK FCA laid down a Temporary Permissions Regime (TPR) for any EU/EEA firms/funds providing services in the UK under a EU/EEA passport before the Brexit date, allowing them to continue their businesses post-Brexit in the same conditions, provided that those EU/EEA firms/funds did register into the TPR before the 31st of December 11:00PM.
Marketing UCITS vehicles in the UK post-Brexit
Additional newly created sub-funds of non-UK umbrella UCITS, for which at least one sub-fund was already registered into the TPR before the 31st of December 11:00PM, may be added into the existing passport and therefore be distributed in the UK post-Brexit.
On the other hand, the UCITS regulations are not more applicable in the UK from the 1st of January 2021. As a consequence, non-UK UCITS not subject to the below TPR extension to additional sub-funds, are now considered as third-country funds from a registration for marketing to UK investors perspective, and therefore require a FCA recognition to be distributed to the public in the UK.
In addition, non-UK UCITS wishing to market units to institutional/professional investors in the UK must apply for notification as appropriate.
Marketing EEA AIF vehicles in the UK post-Brexit
(Non-)EEA AIF vehicles, not registered into the TPMR and no therefore passported in the UK, are considered as third-country funds managed by third-country AIFM.
As a consequence,
- Those (non-)EEA AIFs wishing to market units to institutional/professional investors in the UK must apply for notification as appropriate.
- Those (non-)EEA AIFs wishing to market units to the public in the UK must apply for recognition
As a conclusion, the UK market is now fully “reopened” with appropriate procedures and regimes for the marketing of UCITS or EEA AIF funds; EEA fund products are now considered as third-country products and the registration procedure have been adjusted accordingly.
The updated FundGlobam UK fact file edition is available, reflecting those Brexit changes.
FundGlobam will be happy to assist you should you require any further information.