Hard Brexit Impact Analysis

Page 34 of 106 Category If no agreement is reached: Consequence EU Document Finance Asset management As of the withdrawal date : 1) For UCITS, EuVECA, EuSEF and ELTIF, both the investment funds and their managers must be established and registered or authorised in the EU to manage and market funds to retail and professional investors across the Union. 2) AIF managers need to be established and authorised in the EU to be allowed to manage and market AIFs to professional investors across the EU. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management As of the withdrawal date all collective investment undertakings registered or authorised in the United Kingdom will be non-EU alternative investment funds (non-EU AIFs). This applies to: Undertakings for Collective Investment in Transferable Securities (UCITS), Alternative investment funds (AIFs); European Venture Capital Funds (EuVECA); European Social Entrepreneurship Funds (EuSEF); European Long Term Investment Funds (ELTIF); and Money Market Funds (MMF). WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management As of the withdrawal date Member States may allow AIF managers who are not established and authorised in the EU to market AIFs (EU AIFs and non-EU AIFs) only in their territory under the so-called National Private Placement regimes13 (hereafter "NPPR"). Directive 2011/61/EU provides Member States with discretion as to whether to activate NPPR and allow for stricter rules in addition to the minimum requirements in that Directive. Some Member States do not allow for the NPPR, while other Member States only allow marketing to professional investors. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management As of the withdrawal date UCITS management companies or AIF managers authorised by EU 27 competent authorities in accordance with Article 6 of Directive 2009/65/EC or Article 6 of Directive 2011/61/EU which are subsidiaries of entities established in the United Kingdom (legally independent companies established in EU 27 controlled by or affiliated to entities established in the United Kingdom) can continue to operate on the basis of their authorisation as UCITS management companies or AIF managers in the EU 27. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT