Meet the new regulation dedicated to targeting third-country investment firms’ prudential activities post-Brexit. Here, Practice Insight discusses the proposals with a European Commission spokesperson and buyside in-house counsel
Corporates and asset managers are refusing to sign any repapered contracts in anticipation of a soft or cancelled Brexit. They say they will deal with it nearer the time, and hope regulators will be flexible
Big banks are giving employees their new contracts to be signed and dated once they have officially relocated to an EU hub, while large buyside firms are assessing their Mifid activities
Trade associations are boosting their lobbying efforts for harmonious post-Brexit temporary measures across the EU27. Market sources are struggling to gather all the relevant laws in one place as the news evolves rapidly
The ball is in national regulators’ court to determine what is a genuine or a material adverse contractual change when it comes to Libor repapering exceptions for initial margin rules
UK firms' ability to trade EU-listed shares post-Brexit remains uncertain. The FCA will be applying a level of flexibility for firms that demonstrate an attempt at compliance by March 29
Debt, equities and FX market participants are pricing in a delay to Brexit following the vote on March 12, as well as preparing the new deal pipeline for the first week of April
Senior broker and bank sources have a positive outlook despite market volatility, and actually think a hard Brexit would be good for M&A – but protectionism remains an issue
Third-country sponsors and UK firms will need to establish an EU home before future issuances. Meanwhile others are worried about the regulation's extensive risks factors
Buyside firms must consider regulatory reviews, Brexit and BEPS – tax’s Mifid II – in their relocation strategies. Two longstanding fund hubs are accelerating their efforts to snap them up
Buyside sources reveal their proposed solutions to the lack of marketing and distribution rights for UK fund managers post-Brexit – but some of these may lead to Mifid II breaches
Market participants are increasing their equivalence lobbying efforts as the post-Brexit treatment of bonds and stocks listed on the London Stock Exchange remains unknown. Plus, Goldman Sachs responds to Switzerland relocation rumours
Although managers applaud EU and UK regulators’ achievement of agreeing on delegation, there are still no passporting provisions for outbound UK funds. Meanwhile, the TPR is finally gaining traction
The majority of the investment management community is now turning to the concept of management companies as a post-Brexit solution. Other more cautious managers are making their way to Luxembourg
A batch of STS-approved deals makes some hopeful about the new regime, but others remain unconvinced and believe the market will shrink due to the stringent data requirements
Banks are nervous about offering these facilities to their clients,owing to confidentiality concerns around sensitive trade information. But this hasn't deterred top tier US banks from offering this service
The Commission has officially published the regulation, but firms are by no means prepared. Here, sources reveal the low level of understanding within working groups