On 12 July 2018, the European Securities and Markets Authority (“ESMA”) issued a public statement in order to raise the awareness of all market participants on the importance of preparing for the possibility of no agreement in the context of the United Kingdom withdrawing from the European Union.
Pursuant to this, the regulator for the Luxembourg financial sector, the Commission de Surveillance du Secteur Financier (“CSSF”) reminded managers wishing to relocate to Luxembourg of the need to obtain an authorisation in order to continue to service the European market should a “hard Brexit” take place on 30 March 2019.
An alternative solution?
For those asset managers not wishing to relocate, or set up operations in Luxembourg or an equivalent jurisdiction, there is a requirement to appoint a third party alternative investment fund manager (AIFM) in an EU27 member state in order to preserve passporting rights and allowance to distribute to investors in the EEA.
Vistra Fund Management S.A. is the third party AIFM of Vistra, licenced to manage private equity, real estate, infrastructure and debt funds. By appointing Vistra as AIFM, asset managers are able to continue to market funds within the EEA, whilst retaining portfolio management of their funds under suitable AIFMD compliant delegation arrangements.
This solution decreases the cost, resource and regulatory burden on managers, as well as the time to market, allowing them to concentrate on generating superior returns for their investors.
For more information, please contact Jan, Anna, or Tom.
The contents of this article are intended for informational purposes only. The article should not be relied on as legal or other professional advice. Neither Vistra Group Holding S.A. nor any of its group companies, subsidiaries or affiliates accept responsibility for any loss occasioned by actions taken or refrained from as a result of reading or otherwise consuming this article. For details, read our Legal and Regulatory notice at: http://www.vistra.com/notices . Copyright © 2023 by Vistra Group Holdings SA. All Rights Reserved.
Domiciling funds in Luxembourg for EU market access: What fund managers should know
30 Nov 2023
Luxembourg has long been a prominent player in the alternative investment market and is the top domiciliation choice in Europe and one of the most popular globally. The country is poised to become…
The basics of customs duties for multinational organisations
22 Nov 2023
Vistra appoints Frank Roden as Country Managing Director, Vistra Luxembourg
21 Nov 2023
Transitioning from equity to credit in private markets
16 Nov 2023
The benefits of outsourcing fund administration
08 Nov 2023
How to prepare for the EU’s BEFIT initiative
01 Nov 2023