UK officially leaves the EU, entering a transition period which will last until 31st December 2020
On 31st January at 11:00 (GMT) the UK officially left the European Union. Any changes this will bring will not be immediately noticeable because there is a transition period lasting until 31st December 2020. Until that date, free movement of people, goods and services remains the same and the UK still has to follow the EU regulations. In this respect, what this exit means for Asset Managers it is also to be seen and decided. For Asset Managers who would like to monitor the development of this process, there are a number of events to follow which are outlined in the Political Declaration contained in the EU Withdrawal Agreement. There, they can find some further details regarding the next phase of negotiations. For the time being, the negotiations are set to last for 11 months. However, due to its complexity, some experts have pointed out that this period might be extended. The potential extension of this timeframe has to be requested before June. Matters such as the regulatory Equivalences and EU market access permissions are some of the key topics which will impact Asset Managers in Europe and UK. Currently, funds can continue to be passported into the UK until 31st December 2020, how this regime will evolve after the transition period will only be known with the development of the trade negotiations.