ESMA recommends post-Brexit UCITS and AIFMD changes in 'attack on London'

Writing ahead of AIFMD review

Pan-European regulator ESMA has recommended a raft of changes to the regulation of investment funds, which could result in significant restrictions on the capacity for UK-based asset managers to continue to operate EU-based funds after the UK leaves the bloc at the end of this year.

Writing to the European Commission ahead of the EU executive's review of the AIFMD regulation, ESMA chair Steven Maijoor highlighted concerns on delegation, substance requirements, secondments and white label providers arising as a result of Brexit. Regulation Blog: EFAMA calls for UCITS exemption extension and PRIIPs review At the end of the Brexit transition period in December, the UK will become a third-party country with respect to European fund regulation. UK-based asset management firms have thereby been actively putting in place measures to meet "substance" requirements to allo...