On 23 June 2016, the UK shocked the world, and perhaps itself, when it voted in favour of a “Brexit” from the European Union. While the referendum result has brought significant uncertainty to the financial services sector, the Financial Conduct Authority (FCA) has made it clear that, from a regulatory perspective, it is “business as usual”. Indeed, it is clear that firms cannot afford to stand still in the wake of the referendum result, since financial regulation has, as always, continued to evolve.
Political changes: Monitor the impact of major political changes, including the U.S. presidential and congressional elections and Brexit
The results of the U.S. presidential election are historic and unanticipated, and they will have significant economic, political, legal and social implications. As the nation prepares for the Trump administration, many uncertainties remain about how the incoming administration will govern. President-elect Trump has stated that he will pursue vast changes in diverse regulatory sectors, including international trade, health care, energy and the environment. These changes are likely to reshape the legal landscape in which companies must conduct their business, both in the United States and abroad.
The EU Market Abuse Regulation (MAR), which came into effect across the EU on July 3, is a timely reminder in the aftermath of the UK’s Brexit referendum, that, for the time being at least, the UK remains a member of the European Union and that EU financial services legislation continues to have effect.
As an EU regulation, MAR has direct effect in each member state of the EU. MAR will apply in the UK for so long as it remains a member of the EU (and potentially may continue to apply in the event of a negotiated “soft-Brexit”).
The implications of the Brexit referendum are likely to be profound for the investment management industry. Please click here to listen to a presentation, delivered via conference call, by Akin Gump Strauss Hauer & Feld LLP’s UK/EU investment management and financial regulatory teams on which they discussed the immediate ramifications of the referendum and provided a roundup of the constitutional, legal, market and regulatory announcements made in the hours following the announcement of the result.
The speakers on the call are:
MiFID II’s Passport for “Third Countries” and the Possibility of Continued Access to the EU Market for UK Firms
The decision to hold a referendum as to whether the United Kingdom (UK) should remain a member of the European Union (EU) introduced the term “Brexit” into the global political lexicon. Now that the UK has voted to leave the EU, the term has spawned new variations: will the UK’s departure be a “soft-Brexit” or a “hard-Brexit”?
The result of the UK’s referendum of 23 June 2016 was announced today as a victory for ‘Brexit’ - in other words, for the UK to exit the European Union. This decision is expected to have significant ramifications for the future of the UK’s fiscal and tax policy. We highlight below the key tax implications that are likely to be of particular significance to the investment funds industry, and the likely time frame for any changes.