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Luxembourg - CSSF advises asset managers to anticipate potential hard Brexit

On July 25th, Luxembourg’s financial regulator, the CSSF released a communication advising asset managers to prepare for a hard Brexit scenario where no transition period will be agreed upon and therefore the UK will become a third country as from the 30th  March 2019.

Consequently, the CSSF foresees an increasing number of requests for authorisations from fund managers wishing to keep servicing the European Market via a Luxembourg relocation, and wishes to remind them about the substantial time it requires to analyse the authorisation requests.

The message to fund managers cannot be clearer: anticipate and submit your application as soon as possible in order to avoid any risk of disruption in business and in the industry globally, echoing to the public statement issued by ESMA on the 12th July 2018.

SGG, a leading investor services firm headquartered in Luxembourg,has long been discussing and commenting on post Brexit challenges while suggesting an alternative solution for fund managers not wishing to relocate their fund operations to Luxembourg but willing to service the European market: the appointment of  a fully authorised third-party AIFM. We strongly believe that this solution would be the most flexible and cost-effective for alternative asset managers and would secure them access to the European market without causing any business disruption.

Christian Heinen, Managing Director commented: “SGG Luxembourg is well-positioned to offer UK alternative asset managers the range of AIFM services they require in order to cope with Brexit pressure.  Whether they are looking for a long term solution to ensure full distribution in the EU or for fund managers needing a medium-term solution while requesting their own licence, SGG has the flexibility, an experienced team and the regulatory framework to offer a tailored range of AIFM Services, allowing asset managers a seamless post-Brexit transition”.

For more information, please contact:

Christian Heinen
Managing Director
T +352 466111 2728

Neil Synnott
Client Director
T +352 466111 3290