UK passporting fears realised on Brexit vote

Author: Tom Young | Published: 24 Jun 2016

The UK’s vote to leave the European Union will now test financial institutions’ fears over loss of passporting rights, and specifically the likelihood of effective equivalence.

The most obvious effect on the funds industry relates to The Alternative Investment Fund Managers Directive (AIFMD).

Assuming the UK separates entirely from the EU and doesn’t remain in the European Economic Area (EEA) with a similar status to Norway, then the UK will become a third country for AIFMD purposes. The marketing passport into Europe will no longer be available to UK managers.

An IFLR poll conducted in April found a loss of passporting rights to be among the biggest referendum-related concerns among readers, along with third party access rules....