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On 15 July 2019, the CSSF published two press releases (19/33 and 19/34) directed at (i) UK firms and (ii) UCITS management companies and AIFMs, clarifying actions to be taken by UK entities in anticipation of a hard Brexit. Once again, the Luxembourg financial regulator demonstrates a clear intention to view the UK as a key partner. This statement follows the CSSF press release 19/18 regarding the publication of laws on 8 April 2019 relating to measures to be taken in relation to the financial sector in case of a withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union (the Brexit Law) which had set a first framework ensuring the performance of activities in a post Brexit context.
The CSSF confirms its initial position towards currently authorised UK entities by granting the benefit of a transitional regime, ensuring both the stability of financial markets and the protection of investors. However, UK firms (under CRD, MiFID II, PSD2 or EMD) (the UK Firms) which have not taken the necessary steps in anticipating a hard Brexit scenario might take the strain. Indeed, UK Firms who intend to conclude new contracts in the context of Brexit shall be excluded from the transitional period, opening the road to a 12-month uncertainty period.
Authored By:
Jeremie Schaeffer
Nicolas Cuisset
Jessica Betti
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