Each of the key E.U. financial services directives – the Markets in Financial Instruments Directive
, the Alternative Investment Fund Managers Directive
and the Directive on Undertakings for Collective Investment in Transferable Securities
(collectively, the Directives) – contains requirements on the “substance” required to establish an asset management firm in an E.U. member state, including restrictions on a manager’s ability to outsource key functions to other entities. The U.K.’s decision to withdraw from the E.U., and the anticipated relocation of U.K.-based firms to the E.U., has led to further efforts within the E.U. to clarify positions on outsourcing. The European Securities and Markets Authority (ESMA) has published several opinions in 2017 outlining principles for competent authorities to follow when authorizing U.K. investment firms and managers (among others) to relocate within the E.U. In a guest article, John Young, PSL counsel at Ropes & Gray, considers the basic substance requirements in the Directives, along with the highlights of ESMA’s opinions and how those opinions might affect U.K. firms that have plans to relocate following Brexit. For more on ESMA, see “ESMA Strives to Prepare Markets As MiFID II, MiFIR and Brexit Approach
” (Oct. 12, 2017); and “ESMA Requires Enhanced Supervisory Role and Tools for Harmonizing E.U. and Third-Country Regulations
” (Jun. 22, 2017). For additional insight from Young, see “Ropes & Gray Attorneys Discuss Implications for U.S. Hedge Fund Managers of the European Market Infrastructure Regulation
” (Jul. 18, 2014).
To read the full article
Sorry, we do not recognise the username and password combination you have entered.
Please ensure you have typed your email address correctly and remember that passwords are case sensitive.
You are logged into a maximum of three different browsers/devices.
Please log in with one previously used and go to My Account to manage the browsers/devices you are using.
A reset link has been sent to the email address provided.
Please be aware that the time taken for mail to be delivered is dependent upon your Internet Service Provider. It should normally arrive within 5-15 minutes.
Thank you, we'll contact you about your trial