Brexit – Implications For The Asset Management Sector

Introduction

When the United Kingdom (the "UK") voted to leave the European Union (the "EU") on 23 June 2016, the decision triggered unprecedented uncertainty around the future relationship between the EU and one of its largest members. The referendum was followed on 29 March 2017 by the UK's formal notification of its intention to withdraw from the EU pursuant to Article 50 of the Treaty on European Union.

Given the challenges of untangling over 40 years of UK-EU affairs, developed through treaties, agreements, delegation and cooperation, it is not surprising that significant doubt remains over the impact Brexit will have. What is certain, however, is that in the absence of a withdrawal agreement, all EU law will cease to apply to the UK from 30 March 2019. From that point on, the UK will no longer be a member of the EU and will become a "third country". From an asset management perspective, this means that EU rules on the management of investment funds,