6 Months To Brexit: Implications And Contingency Planning For Fund Managers

Introduction

The United Kingdom ("UK") formally notified the European Union ("EU") of its intention to leave the EU under Article 50 of the EU's Lisbon Treaty in March 2017. This triggered a two-year period during which the terms of the UK's exit from the EU are to be agreed. This two-year period ends on 29 March 2019.

The UK and the EU agreed on guidelines for a proposed 21-month transitional period following the 29 March 2019 exit date.  Under the terms of the proposed transitional arrangements, most EU legislation (including the AIFMD) would continue to apply to the UK in the same way as it does currently until 31 December 2020. In such a scenario the short-term impact of Brexit on the UK and EU financial services sector should be minimal.