Post-Brexit Funds Landscape Is Clearer

With the marketing of funds between the UK and the EU set to continue, London will remain a funds hub explains Head of Alternative Investments, Simon Burgess.

Domicile choice depends on where a fund's investors are based and their appetite to invest through particular jurisdictions. In Europe, since the UK's Brexit referendum in 2016, Luxembourg has become a jurisdiction of particular interest to European investors.

Until recently, market participants had not known the extent to which managers in London would be able to access the European investor pool after the UK's transition period ends on 31 December. But the announcement by the UK's Financial Conduct Authority and European Securities and Markets Authority in July that the Memoranda of Understanding (previously agreed in February 2019 to cover "a hard Brexit" or "a no-deal Brexit" scenario) would take effect following the end of the Brexit transition period alleviated these concerns.