ESMA's Brexit Reminder

Although most Brexit related media coverage of the financial services sector has focused to date on banking, on insurance and on market infrastructure issues post-divorce, the asset and funds management sectors have also been considering their options.

Whilst in many ways related, the funds management and asset management industries are not the same and are subject to different, albeit again related, legal and regulatory regimes. Yesterday, twenty days before the first formal EU / UK Brexit talks are scheduled to commence, ESMA (European Securities and Markets Authority) issued an Opinion setting out a series of principles relevant to outsourcing, delegation and anti-letter-box provisions within the funds and asset management sectors. The principles are intended as a reminder to the national regulators of their obligations when assessing applications for authorisation, including Brexit related ones so one should not expect anything controversial.