With the clock ticking and what was a seemingly unrealistic possibility in 2016, here we are in 2017 with article 50 triggered and a two year framework for the UK’s exit from the EU.
Brexit is not just about the future of London, as a financial hub for the UK-based investment and fund management industry. It is about what this means for other EU Member States ('EU27') and elsewhere.
Until now, most businesses in and out of the UK have taken place via EU regulatory passports. For funds and management companies the key passports are in the Undertaking in Collective Investment Fund Managers Directive (UCITS) along with the Alternative Investment Fund Managers Directive (AIFMD).
However, the Markets in Financial Instruments Directive (MiFiD II) passport, dominates the provision of the investment management services industry. The loss of any one of these passports, or indeed all, would have varied implications in both the retail and professional market places.
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KPMG’s Evolving Investment Management Regulation report reviews the top regulatory challenges for the global investment and fund management industry.