Hard Brexit Impact Analysis

Page 36 of 106 Category If no agreement is reached: Consequence EU Document Finance Asset management EU ASSET MANAGEMENT ACTIVITY as of the withdrawal date UCITS depositaries need to demonstrate objective reasons for delegation and to ensure that in the event of an insolvency of that third party, the assets held in custody are unavailable for distribution among, or realisation for the benefit of, its creditors. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management EU ASSET MANAGEMENT ACTIVITY as of the withdrawal date Non-EU AIF managed by an AIF manager established and authorised in the EU can appoint a depositary in the third country of the non-EU AIF subject to specific requirements WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management EU ASSET MANAGEMENT ACTIVITY: Before of the withdrawal date According to Article 22 of Directive 2011/61/EU, AIF managers must include in the annual report any material change to the information to be disclosed to investors, which includes, but is not limited to, the legal implications of the contractual relationship. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management EU ASSET MANAGEMENT ACTIVITY: Before of the withdrawal date According to Article 78 of Directive 2009/65/EC, UCITS management companies must prepare a key investor information document whose essential elements must be kept up to date. This includes information on Member States in which the management company is authorised, where the UCITS is managed or marketed cross-border. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management EU ASSET MANAGEMENT ACTIVITY: Before of the withdrawal date UCITS management companies and AIF managers must assess whether the change of the legal status of the investment fund would still be compliant with the investment strategy of the fund as communicated earlier to investors. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT Finance Asset management EU ASSET MANAGEMENT ACTIVITY: As of the withdrawal date as regards the assets in which EU funds invest, Directive 2009/65/EC and Directive 2011/61/EU do not prohibit investment in eligible assets located outside the EU. Nevertheless, there will be restrictions to fund-of-funds structures; in particular, UCITS authorised in the EU 27 must assess the eligibility of (former) UCITS authorised in the United Kingdom WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF ASSET MANAGEMENT