With only 6 months to go before the United Kingdom leaves the European Union there is still much uncertainty as to what deal the EU 27 will reach with the UK and many senior governmental representatives are now openly suggesting there is a 50% chance of no deal being reached at all. With London being the financial center of Europe, financial services are one area that will be seriously affected by a no-deal scenario. With respect to UCITS and AIFs, EU passporting rights currently allow for EU asset managers and UCITS funds to market their funds to other EU countries. With the UK not being in the EU, UK asset managers will no longer have these rights.
Only in February this year the EU issued a notice to UK Asset Managers and stakeholders stating that in event of no agreement, as of March 30th 2019, all UCITS funds and UK AIF managers will become non-EU AIFs and will need to comply with regulations applicable to non-EU AIFs, including the so called national private placement regimes. This will involve the funds or managers obtaining permission to market their funds in a respective EU country, and with respect to regulatory reporting will also require the funds to submit AIFMD Annex IV reports in the country the fund is marketing within. With only 6 months to go some AIFs and UCITS are already in the process of implementing contingency plans in the event of a no-deal scenario.
To take away the burden of regulatory reporting firms are turning to Matterhorn Reporting Services for help. As well as offering a best in class MiFID II transaction reporting solution, Matterhorn Reporting Services provide a secure, light weight AIFMD Annex IV reporting solution used by fund and asset managers throughout the EU and the US, and with their experience of filing regulatory reports through multiple EU authorities, stand ready to assist any UCITS or AIFs who need to file Annex IV through any jurisdiction in the EU.