Third Country Delegation And Brexit MoUs – A Reprieve!

Recent keynote speeches from ESMA representatives and those of other key regulatory stakeholders have sent a clear message to the European funds industry as to the positive intent of such stakeholders to ensure that delegation of investment management by UCITS management companies and AIFMs to UK based investment managers may continue even in the event of a no-deal Brexit.

Preparation of MoUs

UCITS management companies and AIFMs can only delegate investment management to entities located in third countries where a memorandum of understanding ("MoU") is in place between their own regulator and the competent authority of that third country. In his recent speech to the WFE Annual Meeting on 3rd October, Mr Steven Maijoor, Chair of ESMA, confirmed reports that ESMA is working to ensure that appropriate MoUs are put in place with the UK's FCA to facilitate the continued delegation of investment management back to the UK. The stated intent is that such MoUs will be in