Brexit: The Final Countdown
This week, EU and UK Brexit negotiators meet again to try to reach a post Brexit free-trade agreement. If no deal materialises this week, time will almost certainly run out to get any agreement ratified before the end of the transition period on 31 December. The fall-out of a hard Brexit would affect many industries, but particularly financial services. Amidst the hope for light at the end of the tunnel, there is some cause for concern: The UK Chancellor, Rishi Sunak, recently told Parliament that he has given up on getting an agreement on equivalence in financial services with the EU. In response, the EU’s Daniel Ferrie has said that Sunak has provided no clarity on whether the UK plans to diverge from EU rules and regulations on financial services. Negotiations were thrown into more disarray last week after a member of the EU’s negotiation team tested positive for coronavirus. It now seems evident that asset management firms on both sides of the Channel will not be able to rely on the prospect of a mutual understanding between the EU and the UK. In fact, this week the European Banking Authority again reminded financial institutions of the need for contingency planning in light of the Brexit end of the transition period.
In addition, the European Commission has published a consultation paper to solicit views on whether the delegation of portfolio management should continue to be allowed post Brexit, specifically for managers based in the UK.
Navigating and planning for all these uncertainties is challenging and requires a partner who can design tailored solutions delivered by a hand-picked team of industry experts. Especially for managers of alternative assets, being able to answer the following questions come 1 January will be crucial:
ONE can provide full substance in Luxembourg and offer plug-and-play solutions that make it easy for you to manage a fund domiciled in the largest European cross-border fund jurisdiction and support investment managers’ continued access to the European market.
For those asset managers who wish run their own Management Company in the EU, we can complement your operations with resources and technology built on the latest rules and regulations.
Advisors who run illiquid strategies, such as private equity and real estate, can appoint us as their manager and leverage our team with substantial front-office expertise.
ONE can support investment managers’ continued access to the European market by taking on the role of global distributor for both UCITS and AIF.
ONE has utilised its experience and expertise to help financial services firms set up licensed entities in Luxembourg, including support with regulatory licenses, office space and infrastructure, technology and personnel.
We operate around the principle that if our people have a stake in the business, they will do a better job for our clients. We have a committed and stable team, as they see the benefit of long-term value creation through building long-standing relationships. We build value for clients, and their end customer.
You can have the best technology and the most efficient processes in the world, but if you don’t have the people to operate them, your business is worth very little. Thus, our biggest asset is our team of professional and passionate experts.
We operate next generation technology through a combination of in-house, and best in market solutions to deliver an impeccable service and use technology to excel in both service delivery and efficiency.
We delight in valued long-term partnerships with clients, team, industry partners and our stakeholders. We aim to work with clients who share our belief in the importance of building strong partnerships over time.