In light of the fact that the date for a potential Hard Brexit1 has been postponed until 31 January 20202, the CSSF has published a new Press Release (19/54) in relation to the mandatory notifications in the context of a Hard Brexit. This Press Release amends the previous deadlines provided by the CSSF for the submission of the Brexit notifications.
All affected entities that have not yet done so, are invited to notify the CSSF through the CSSF eDesk Portal at their earliest convenience of their intention and way forward to continue to provide services in Luxembourg in the case of a Hard Brexit.
As a reminder, for investment firms and managers, the targeted entities are firms licensed under the AIFM or the UCITS Directive and/or the related regulated Luxembourg AIFs that are currently providing services in Luxembourg under a valid EU passport and that are planning to continue to provide services under the relevant passports of the AIFM or the UCITS Directive, i.e.:
- UK AIFM licensed under AIFM Directive;
- Luxembourg regulated AIF managed by a UK AIFM licensed under the AIFM Directive;
- UK management company licensed under UCITS Directive;
- UK UCITS marketed in Luxembourg under the UCITS Directive.
In addition, by 15 January 2020 at the latest, these entities are required to submit to the CSSF:
- the corresponding application for authorisation or, as the case may be,
- the corresponding notification or information on any action taken otherwise, depending on the nature of the activities they intend to pursue after the occurrence of a Hard Brexit and/or the steps undertaken to address the loss of passporting rights.
Based on the information submitted and in accordance with the Brexit laws adopted in Luxembourg, the CSSF may on a case-by-case basis grant the above entities, the possibility to continue their activities in Luxembourg for a limited period of 12 months after the occurrence of a Hard Brexit ("Transitional Regime"). Affected UCIs and/or their managers will be informed of their right to benefit from the Transitional Regime within 10 business days of the submission of the aforesaid application/notification.
Entities that are currently authorised in the UK under both the UCITS Directive and the AIFM Directive will be required to proceed with a Brexit notification for both licences.
Entities that have already submitted an application for authorisation with the CSSF in anticipation of a Hard Brexit are nevertheless required to submit a Brexit notification to the CSSF.
Press Release 19/54 also invites affected entities to continue to take all necessary steps to prepare for and anticipate the consequences of a possible Hard Brexit, and to work on contingency planning, notably to ensure that customers and investors are adequately informed.
1. "Hard Brexit" refers to a situation where the UK would leave the EU in an uncoordinated manner on 31 January 2020, i.e. without concluding a withdrawal agreement based on Article 50(2) of the Treaty on the EU.
2. For more details on this extension, see the article "Brexit postponed" in the EU law, competition and antitrust section of this Newsletter and the article "Brexit: CSSF communications updated" in the Corporate, banking and finance section of this Newsletter.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.