On June 23, 2016, the UK electorate voted in a referendum by
51.9% to 48.1% to leave the EU. The actual departure from the EU
will be preceded by complex negotiations. Although the UK
Government has not yet notified the European Council of its
intention to withdraw under Art. 50 of the Treaty on the European
Union, it seems that there is no doubt that such notice will be
given. In such case, the UK would cease to be a member of the EU no
later than two years after notice.
The following summarizes some relevant aspects for UK AIFMs
active in Germany following a departure by the UK.
1. Impact on Debt and Loan Originating Funds investing in
Germany
Germany just recently amended its German Banking Act
(Kreditwesengesetz) and Investment Act (KAGB) as
a result of which an exemption applies for AIFMs and AIFs lending
to German borrowers which is no longer deemed a regulated banking
activity. Following a departure, UK AIFMs will be non-EU AIFMs. For
non-EU AIFMs the
