Brexit For Fund Managers: Time For Cool Heads

The UK electorate voted to leave the European Union (EU) in the "Brexit" referendum held on 23 June 2016. This note looks at the practical impact of a Brexit for fund managers, including possible solutions in the event that the UK ceases to form part of the European Economic Area.

Introduction

Despite the results of the UK referendum, the UK has not yet formally made the so-called "Article 50 notification" triggering exit negotiations. The outcome of those exit negotiations, which could take several years, is uncertain. Ultimately, the UK may, or may not, end up remaining in a modified European Union relationship, or the European Economic Area (the "EEA"), and continue to be part of the single market. But there is reason for optimism, even if the eventual result is that the UK ceases to form part of the EEA. Although it is sensible to make contingency plans, from a regulatory perspective at least there are potential workarounds for managers in the UK