UK Government Grants Long-Term Market Access for EU Investment Funds, Easing Post-Brexit Worries
The UK government grants long-term market access for EU investment funds, ensuring UK investors can continue to access EU-based funds without new costly requirements post-Brexit.
UK Grants Long-Term Market Access for EU Investment Funds The UK government has announced a significant decision that will benefit UK investors using EU-based investment and money market funds. Following a detailed assessment, the government has found that EU funds are equivalent, meaning they operate under home rules that are robust enough to protect UK investors. According to Britain's financial services minister Bim Afolami, the government does not intend to require the funds assessed to comply with any additional UK requirements as part of this equivalence determination.
This decision will provide long-term market access for EU funds without new costly requirements, such as mandatory valuation assessments. This move comes as a relief to asset managers and investors, who were worried that obtaining long-term post-Brexit access to Britain could come with burdensome new requirements. Funds listed in Dublin and Luxembourg are widely used by UK investors, and the government's decision will ensure that they can continue to access these funds without unnecessary obstacles.
To implement the equivalence decision, secondary legislation would be needed, and the government has announced that it will extend the system of temporary access permission by a year to allow enough time to implement the legislation. This extension replaces the previous expiration date of 2025 and provides greater certainty for UK investors and fund managers.