Following the end of the Brexit transition period, AIFMs wishing to market their funds should re-evaluate the AIFMD marketing notification requirements, taking into account the combination of their own jurisdiction, that of the fund, and that of their prospects in order to understand the process to follow.
And so, UK AIFMs marketing:
- UK AIFs in EEA member states;
- EEA AIFs in the UK;
- EEA AIFs in EEA member states; or
- Non-UK and Non-EEA (e.g. Cayman) AIFs in EEA member states
will in each case need to follow different procedures from 1 January 2021 due to the UK becoming a “third country” under the AIFMD and the subsequent loss of rights under Article 36 and recourse to the so-called “marketing passport” under article 32 respectively.
UK AIFMs wanting to continue marketing funds into the EU for example, will therefore have to re-register their AIFs in each EEA country that they wish to market under the local National Private Placement Regime (Article 42). Note that Article 42 carries the additional burden of Annex IV reports being required in each and every country where the AIF is registered for marketing (as well as the equivalent AIF001/002 reports to the FCA).
AIFMs should proceed with these registrations as soon as possible to avoid being unable to market their AIFs for an interim period.
Our essential guide to AIFMD marketing after Brexit can help you to further understand the permutations of location of AIFMs, AIFs, and prospective investors.
How we help
Our Brexit solutions: Whether you are seeking long- or short- term solutions to access the UK markets, we can help. Our solutions to the challenges presented by Brexit include:
- FCA Authorisation Project Management
- MiFID Passporting Solution
- EEA to Third Country Branch Solution
- Mirabella Tied-Agent Option
- Ongoing Compliance Support, including MIFID II reviews and SM&CR support and implementation
- TPR Notification Management