Jake GreenFrom: Brexit and Financial Regulation
Edited By: Jonathan Herbst, Simon Lovegrove
This chapter explores the AIFMD. Although UK AIFMs, unlike some of their European counterparts, had been authorised and regulated in the UK, AIFMD substantially altered and increased the regulatory burden on UK AIFMs. On the other hand, the key benefit for most EEA AIFMs of AIFMD was the introduction of the marketing passport that allowed for AIFMs to market funds throughout the EEA to professional investors without additional costs, disclosures, or other obligations imposed on the AIFM. Although the political situation may change the position of the UK government, on Brexit, AIFMD will essentially continue to apply to UK AIFMs. However, absent any transitional arrangements, the EEA will treat UK AIFs and AIFMs as third country (non-EEA) AIFMs and AIFs. There is a regime in place for these entities at present and this will apply to the UK as it does to managers in other jurisdictions.