1 December 2020

Brexit : 5 things you need to know today

1. "The timetable has gone out the window"

Last night, politico.eu reported a UK official briefing “that the formal agenda for what will be discussed has been scrapped, with both sides taking each day as it comes”.

2. Firms face regulatory “patchwork”, plus UCITS KIID (v.2)

Ignites report this morning of the UK Financial Conduct Authority (FCA) director highlighting that fund firms will have to contend with “a patchwork of agreements”, including local fund regimes and ESG divergence); lawyers also contemplate the UK retaining a modified edition of the UCITS key investor information document (KIID), while the troubled PRIIPS successor (KID) is abandoned.

3. Europe’s finance sector hits Brexit ‘peak uncertainty’

While the UK had previously announced significant measures to smooth the post-Brexit transition for fund firms, there has been has been no reciprocation from the European Commission (up until now).  Accordingly, the Financial Times reports that Europe’s financial sector has reached “peak uncertainty” with regulators and firms are “left in the dark”, while some fearing that fear a lack of clarity “could lead to market dysfunction and inflated costs for clients”.

4. ManCo M&A accelerate (as transition deadline looms)

The FT also reports a recent surge in mergers & acquisitions among third party management companies (now widely sought by Private Equity firms, given European fund managers’ continuing dependencies).

5. CSSF shares EBA reminder to UK firms

Finally for now, last week the Luxembourg regulator shared a reminder from the European Banking Authority of what UK financial institutions currently face in a matter of days.

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