The number of UCIs taken into consideration is 3,785 compared to 3,807 the previous month2 . 2,482 entities have adopted a multiple compartment structure, representing 13,545 compartments. Adding the 1,303 entities with a traditional structure, a total of 14,848 units are active in the financial centre.
Flexibility in the wake of a potential hard Brexit: CSSF press releases 19/48 and 19/54
On October 11, 2019, the Commission de Surveillance du Secteur Financier (CSSF) issued Press Release 19/48 (PR19/48) in relation to the UK leaving the EU without an agreement on 31 October 2019 (hard Brexit). PR19/48 related to both: (i) UK managers of alternative investment funds established in Luxembourg (AIFs), whether regulated or not (UK Managers), which did not submit a Brexit notification (a Required Brexit Notification) to the CSSF by September 15, 2019; and (ii) UK Managers that had submitted the Required Brexit Notification by September 15, 2019.
CSSF Press Release 19/54 of 6 November 2019 (PR19/54) was issued following the extension of the Article 50 period to 31 January 2020 and revises the deadlines as follows:
“Following the decision of the European Council of October 30, 2019 extending the period under Article 50(3) relating to the United Kingdom withdrawal from the European Union, the reference date for a potential hard Brexit in all of CSSF’s previously published communications should now be read as January 31, 2020.
The subsequent application for authorisation, or, as the case may be, notification, or other information on any action taken otherwise (notably as per CSSF press release 19/48) shall be submitted by undertakings for collective investment and/or their managers to the CSSF no later than by January 15, 2020.”
UK Managers that don’t submit the Required Brexit Notification will not be entitled to continue their activities under the transitional period provided for under the laws of April 8, 2019 on Brexit (the Brexit Laws) and will be considered “third country managers” from the date of a hard Brexit. Accordingly they will, from the date of a hard Brexit, lose the benefit of their existing passporting rights.
UK Managers that wish to continue their activities from the date of a hard Brexit must now:
The CSSF reserves the right to publish, in due course, a list of UK Managers that don’t comply with these requirements.
UK Managers who submitted the Required Brexit Notification, have, instead of remaining subject to the transitional regime as a result of such notification, been granted the possibility of opting to become “third country managers” for each AIF, subject to:
Whilst the above statements made by the CSSF are based on the assumption of a hard Brexit occurring on January 31, 2020 (based on PR19/54), and the CSSF does not preclude the possibility of future legislative or regulatory modifications of the third country regime, the introduction by the CSSF of an option for those UK Managers having already made the Required Brexit Notification to become, subject to the fulfilment of certain conditions, third country managers, rather than remaining within the transitional regime, is welcome.
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